General mechanics of supply and demand. Be sure to develop and discuss the concept of an equilibrium and how price adjustment achieves an equilibrium in the situations where shortages or surpluses exist. Discuss and illustrate the difference between a change in demand/supply and a change in quantity demanded/supplied, Given a shift in either demand or supply for the Red Delicious discuss the process that moves the market from the old equilibrium to the new one. Remember the key to market adjustments is the movement of price as supply and demand change and then the adjustment of quantities demanded and supplied to price changes.
Now read the following about the Honeycrisp apple:. The Curse of the Honeycrisp Apple.docx and discuss the following:
What happens in the Red Delicious market as the Honeycrisp (a substitute) enters the general apple market? Explain all the mechanics not using actual prices and quantities but general directions in their movement.
Now consider the market for the Honeycrisp apple. In the article there was a discussion about calcium issues in the production of the apples. Suppose a researcher discovers a way to modify the tree’s root ball by adding a fungus to the biomass that results in a symbiotic relationship increasing the trees calcium uptake from the soil so that the producer no longer has to spray the orchard to combat “bitter pit.” What will happen in the Honeycrisp market? Explain the mechanics. Also explain what happens In the Red Delicious market again explaining the mechanics ( hint: a price reduction in Honey Crisp apples).
https://www.orangepippin.com/varieties/apples/red-delicious
