Economics Assignment: Market Analysis and Evaluation (ECON1)

This economics assignment analyzes the food market, focusing on perfect competition and consumer behavior. The assignment explores the characteristics of a perfectly competitive market using the example of a local farmer's market, including the number of sellers, ease of entry, and product similarity. It examines the roles of buyers and sellers, the degree of competition, and the substitutability of goods. The assignment also addresses how consumers respond to price changes, specifically whether they would switch stores based on price fluctuations. Finally, it concludes by evaluating whether the described market meets the criteria of a competitive market. The assignment includes references to support the analysis and conclusions.

Running Head: ECONOMICS 0
Economics
(Student Name)

ECONOMICS 1
Table of Contents
Part 1................................................................................................................................................2
Part 2................................................................................................................................................2
Part 3................................................................................................................................................2
Part 4................................................................................................................................................2
Part 5................................................................................................................................................2
Part 6................................................................................................................................................2
References........................................................................................................................................3

ECONOMICS 2
Part 1
The goods or services that are provided in this market are food market. It is one of the
perfect examples of perfect competition market due to the reason shopping at local’s farmer
market in Florida, where numerous farmers selling the same fruits, vegetables cover the basic
need or requirement of the people. therefore, perfect competition occur where there are many
sellers, there are easy way to enter on the market as well as product of existing products are
identical from one seller to another due to which the seller are price taker.
Part 2
In the local fruits and vegetable market, normal and general consumers are buyers as well
as farmers or firms who deliver vegetable are sellers.
Part 3
The number of sellers in food market is huge that enhance the level of competition
among them to the certain extent (Hamilton & Réquillart, 2017) .
Part 4
The substitution of goods is high due to the reason there are variety of vegetables and
fruits are available to the consumers that enhance the choices among the consumers while they
are purchasing the goods. For example when the price of beans are high, then consumers can
switch to other vegetables easily.
Part 5
Yes, I would prefer to switch to another store if only that store where I usually buy items
raises the prices of its product. for example the price of apple where I buy, increases from $ 50 to
$70 per KG simultaneously another shopkeeper sells same apple at $60 per KG. Therefore, I will
definitely switch from my regular store to the store who offer apple at low price.

ECONOMICS 3
Part 6
Yes, this is a competitive market due to the reason seller are price taker to the certain
extent as well as the number of firms that exists in such market is high. Therefore entry and exit
is easy for the firms. Moreover, the consumers also have good knowledge of the prices what they
purchase. Such features meet the criteria of competitive market (Bonanno, Russo & Menapace,
2018).

ECONOMICS 4
References
Bonanno, A., Russo, C., & Menapace, L. (2018). Market power and bargaining in agrifood
markets: A review of emerging topics and tools. Agribusiness, 34(1), 6-23.
Hamilton, S. F., & Réquillart, V. (2017). Market competition and the health composition of
manufactured food. Health economics, 26(12), 1637-1643.