Develop a discussion of the general mechanics of how a market works using 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.
(As an example for your discussion use the market for generic Red Delicious (Links to an external site.) apples)
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 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 trees 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. In the Red Delicious market again explaining the mechanic ( hint: a price reduction in Honey Crisp apples).
As another example for this part, choose a market and explain what happens as a result of the pandemic induced recession and declining consumer incomes. Choose another market and explain to me using demand and supply with the market in a stable equilibrium what you would expect to happen from a surge in demand for a particular product that was related to the pandemic.
General Paper/Essay Information
1. Your essay should be 10 pages or less of double spaced text in a 12 point font with a ragged right margin. Title page and references do not count.
2. Your essay should be a Microsoft Word Document. The filename should be: yourlastname.docx
3. Do not use wikepedia, investededia, cliff notes, dictionaries, encyclopedias, etc. as sources if you do your grade will be reduced.
4. Your essay should have a title page that, in addition to the title (Use Essay 1, Essay 2, etc. as the title), includes your name and email address.
5. Your essay should cite material that you use and have references.
6. The essay should not be copied text from other sources; it should be in your own words. Your report will be run through a plagiarism checker ( (Links to an external site.)Links to an external site.).