Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations.
Economics Economics Assignment One Part Two The flood which unusually occurred in Australia from to 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.
We will write a custom essay sample on Microeconomics Assignment or any similar topic specifically for you Do Not Waste HIRE WRITER This essay is about discussion of banana market in relationship between supply and demand for bananas after the severe flood from to 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 Cyclone devastates australias banana crop essay producing areas in February Cooper, Compared with June in last year, each week the suppliers could getcartons of bananas per week.
However, this year, and wholesalers could only got 18, cartons a week at a shocking price of The skyrocketing price is owing to the shortage of the bananas.
Before that, Australia would want to import bananas because of the comparative advantage which other countries have in banana production compared to Australia now that the cyclone has caused vast damage. Suppose that the Australian banana market is at equilibrium point C (where demand = supply). Cyclone devastates Australia's banana crop- Practice IA Introduction to theory: Demand and supply are basic economic theories that can help the government and producers make informed decisions like how much to produce, and the price they set for products. Connection to article: The recent Cyclone Larry has affected crops in Australia. Cyclone Larry destroyed approximately $ worth bananas crop which is 90% of the production at Queensland. The fall in supply and unchanged demand will result in a shift of the supply curve to the left resulting in an increase of the equilibrium price.
The shift in demand curve could be caused by many factors, for instance, income, prices of related goods, tastes, expectations and number of buyers, change of input prices, technology, expectations, and the number of sellers. For example, in case of a Smartphone market in Korea, owing to the earthquake took place in Japan in March, where supplies several components, elements, chips to Korean market to produce this Smartphone.
After the earthquake, several factories closed down and were not able to produce these core parts for this Smartphone, and the Smartphone factories in Korea cannot produce this Smartphone since there was a shortage of a few elements for producing the Smartphone.
This resulted in the decrease in supply of Smartphone in the markets of some countries whose Smart phones are produced in Korea. Law of demand states that as the price of one good increase, quantity demanded for the good decreases. The goods that consumers choose to buy according to their needs and wants.
The destroyed crop lands including banana farms has significantly decreased the number of banana sellers in the market which resulted left-shift in supply curve. Before the Cyclone and flood, the general price of banana was 1.
However, this year, after dreadful natural disaster, the banana supply in the market was even much less than 18, cartons in Melbourne market while the quantity demanded for bananas was still strong. As a result, there is shortage in the banana market.
As there is a shortage in the market, market failure occurs. Suppliers will increase the price of product as quantity demanded for the bananas decreases.
The price of bananas will keep going up until it reaches the point where quantity demanded of consumer meet quantity supply of bananas. Price rises from 1. Now new equilibrium for the banana market has achieved as quantity supply and quantity demanded for the banana market has maximized.
Market failure has fixed. From the article about the shortage of bananas in Australian market and the concern caused by the shortage, we can learn how relationship between price and demand in market affects supply of the market. Supply can be changed by many factors. So far, in this essay we focus on how the decrease in the number of sellers or producers in the market can change market situation and how consumers response to.
Suppliers in the banana market increase the price of bananas when there is a shortage in the banana market. In respond to the increase in price of bananas, consumers decrease the quantity demanded of bananas which lead the original equilibrium move to the new equilibrium of the banana market.
By this adjustment process of the market, we can conclude that markets price changes according to the change in quantity demanded and quantity supplied for the product.Before that, Australia would want to import bananas because of the comparative advantage which other countries have in banana production compared to Australia now that the cyclone has caused vast damage.
Suppose that the Australian banana market is at equilibrium point C (where demand = supply). STEP 5: PESTEL/ PEST Analysis of Cyclone Devastates Australias Banana Crop Case Solution: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.
Farmer Patrick Leahy, president of the Australian Banana Growers' Council, told Mr Howard he faced at least six months without an income after Cyclones destroyed his banana crop near Tully.
"It was devastating to sit in my house and watch my crop just slowly go to the ground," Mr Leahy told Macquarie Radio.4/4(1). Cyclone Larry destroyed approximately $ worth bananas crop which is 90% of the production at Queensland.
The fall in supply and unchanged demand will result in a shift of the supply curve to the left resulting in an increase of the equilibrium price. Cyclone Larry has devastated Australia's banana industry, destroying fruit worth $ million and leaving up to 4, people out of work.
A big cyclone could have disastrous long-term consequences for Australia's biggest banana-producing region, potentially spreading a devastating crop disease.
Australian Banana Growers Council.