Economics Assignment One Part Two
The flood which unusually occurred in Australia from 2010 to 2011 in summer, owing to the unusual amount of rain, destroyed the main producing areas of bananas in Australia, caused a large-scale reduction of bananas in Queensland. Bananas as the first biggest selling fruit in Australian market, the main producing areas for the banana market which flooded in the Cyclone Yasi, has caused the Australian citizens to be concerned about the shortage of bananas. This essay is about discussion of banana market in relationship between supply and demand for bananas after the severe flood from 2010 to 2011 during the summer period. After the flood caused by powerful Cyclone Yasi, the fact that the main producing areas were devastated by the flood, the production for bananas is still experiencing a large-scale reduction, at mean time, the demand for banana remains the same or even increasing compare to last year thanks to an expectation about higher price of bananas in the future. As Tony Nigro from Fresh who represents producer wholesalers, stated that banana stocks at Melbourne Market were down to 15 percent of normal supply level compared to other years, reaching the lowest level since Cyclone Yasi devastated Queensland producing areas in February (Cooper, 2011). Compared with June in last year, each week the suppliers could get 114,000 cartons of bananas per week. However, this year, and wholesalers could only got 18,700 cartons a week at a shocking price of 13.00 dollars per kilogram to buy in, and the price in store is approximately 13.98 dollars, and the highest price skyrocketed even reached to 15 dollars per kilogram, and the old price of bananas usually was 1.99 dollars a kilogram in June, 2010, hence, the price in June in store is approximately 7-fold the usual price last year (Cooper, 2011). The skyrocketing price is owing to the shortage of the bananas. The shift in demand curve could be caused by many factors, for instance,...
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