Demand and Supply Dynamics in the Avocado Market of Australia

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

1ECONOMICS ASSIGNMENT
Table of Contents
Introduction................................................................................................................................2
Article Essence...........................................................................................................................2
Avocado Market in Australia.....................................................................................................3
Economic Interpretation.............................................................................................................4
Conclusion..................................................................................................................................7
References..................................................................................................................................9

2ECONOMICS ASSIGNMENT
Introduction
In the conceptual and theoretical framework of economics, one of the key components
of immense importance is the concept of demand and supply of products and services in a
market. The term “Market”, in economics, refer to the place where the demand and the
supply side players, that is the buyers and the sellers, respectively interact with each other
and take decisions regarding the quantity and price of the concerned product or services
(Baumol and Blinder 2015). The prices of the commodities depend on the demand and supply
situations present in the market for that particular commodity and any variation in the
demand or in the supply dynamics lead leads to changes in the price of the same.
Keeping these aspects into consideration, the concerned report tries to analyse the
current issues arising in the avocado market of Australia, in the contemporary period, in the
light of the demand-supply conceptual framework of economies. The report refers to the
news article named, Avocado prices will not drop, industry expert says, to get an overview
of the situations in the concerned market of the country (McInnes 2018).
Article Essence
As per the assertions of the article, there is positive anticipation among the customers
of avocado in the Australian market, regarding the expected fall in the price of the same.
However, as the article shows, according to the chief executive of Avocados Australia, there
is no such indication of a drop in the price of avocado in the coming years. He also
anticipates that the supply of avocado will not increase significantly but will remain steady
over the years and also have the threat of falling short in February.
One of the explanation behind the anticipation of people regarding the fall in the price
of avocado in near future maybe the fact that many new trees have been planted to meet the
demand for the fruit in the market of the concerned country and also the fact that within one