Avocados Essay

Nowadays, Avocados are a popular fruits because they can be apply in different dishes, such as in salads and sandwiches. Moreover, avocados are a good source of vitamin and nutrition. These are the reasons why avocados are demanded by lots of people, and due to a strong demand and scarce supply, avocados have reached a high prices in present. Demand refers to the quantities of a product that purchasers are willing and able to buy at various prices per period of time, other things remaining the same. Supply refers to the quantities of a product that suppliers are willing and able to sell at various prices per period time, other things remaining the same. Due to the Christmas period that people are doing different thing and cause a slowdown in harvesting, mean that there is a couple weeks which not as much fruit gets harvested. Moreover, supply from New Zealand has been down because of some rain, which slowed down the harvest as well. Since these …show more content…
In short-term producers can take the benefit because they could gain profit from the high price. In long-term, economics will face the excess supply due to the firms that produce lots of avocados to gain their profit. This means that the producer won’t be able to sell all the products and lead to surplus. Meanwhile, not all of the consumers will be able to buy the avocados that have a high price such as people who have low income and poor people. In short-run for the government could still handle with the excess supply by pay the farmers not to produce or destroyed the products and buy the surplus. In long-run the government will face the high price to pay for the farmers and destroyed them. Moreover, this method will also cause a waste of resources and for the surplus that the government kept, they could be rotten and therefore couldn’t be used in time of shortage. These situations all cause a burden on