In Miami, Florida the time period between spring and summer, many people have in an increase of demand for this product. Demand can be interpreted by how much the consumer is willing to pay for an additional unit or the previous unit …show more content…
This “ability” is defined on whether or not the producer has the appropriate amount of resources to make an item. What opportunity cost can a producer encounter? if there was a blight on a certain key ingredient for the salsa let’s say tomatoes to make them diced and into tomato puree, the producer will be at a crossroad since he/she will have to decide what trade-off has to be calculated. Note that the producer's goal is to make a profit. The producer might need to determine the value of this ingredient. Is it worth buying tomatoes from a different market that would be sold at a higher price due to the demand because of the blight or invest into a different ingredient to make other salsa? What about investing already into a different ingredient that’s not used for salsa but rather for chips? It seems that the producer might not be able to supply more of this good for the current season but the next best alternative might be the best solution for this situation: making a different salsa that doesn’t require tomatoes or making more chips. The following list is what the producer must consider to make this