Supply_and_Demand

There are about 2500 different varieties of apples grown in the United States each year. Apples are filled with all the healthy nutrients a person needs and are only on average 80 calories per medium apple. Eating this delicious fruit will not only help fight weight, but diseases as well. Apples contain a substance that helps to reduce the risk of certain cancers, cardiovascular disease, asthma and diabetes (Apple Nutrition Facts). Although apples are extremely healthy and delicious, the supply and demand for them change often for many different reasons. Supply and demand is the backbone of a market economy. The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. The higher the price is of a good, there will be a decrease in demand of that good. The law of supply shows the quantities that will be sold at a certain price. In other words, the higher the price, the higher the quantity supplied. Selling a higher quantity of goods at higher price increases a company’s profit (Economics Basis: Demand and Supply). There are many factors that could possibly change a company’s supply and demand of a certain good such as the different seasons, the weather and the condition of the product. For example, apples are much easier to get in the warmer months of spring and summer making them much cheaper than in the colder months of late fall and winter when apples are much more expensive. Another factor that could also affect the change in the supply and demand of apples is the weather. If Florida has a summer of non-stop hurricanes, this will affect the growth of apple trees as well as many other crops by drowning and ruining them. There would be less apples to give to consumers, therefore, increasing the prices of apples. One of the most important things about a good is the condition of it. Apples grow from trees which means they can easily fall from them. If apples fall from trees, worms and other insects or animals will get to them, ruining the apples that are supposed to be shipped to consumers. If a high percentage of apples falls form the apple trees, they cannot be sent, making the price of apples increase because of the limited quantity of apples. Apples are usually cheaper in the summer and more expensive in the winter because they are, for the most part, easier to get in the summer; however, there are many factors that can change the supply and demand of apples throughout the year. Although the weather and different seasons affect the supply and demand of apples, the supply and demand of other goods affects them as well. For example, a substitute is when a fall in the price of one good reduces the demand for another good. If the price of bananas and strawberries falls, people are going to buy more bananas and strawberries decreasing the demand for apples since they are all sweet, delicious fruits. A complement is when a fall in the price of one good raises the demand for another good. If the price of caramel and peanut butter falls, the demand for apples will increase because apples with caramel are commonly used together as are apples with peanut butter. When apples are marked down, there is a higher need for them making them very popular among consumers. In conclusion, although apples are extremely healthy and delicious, the supply and demand for them change often for many different reasons. Many factors such as the weather, different seasons, condition the apples are in when they are ready to be shipped to consumers, as well as the supply and demand of other different goods all affect the supply and demand of apples. There are many factors that can affect the supply and demand of apples throughout the year.