Shifts in Blueberry Supply and Demand

http://www.opb.org/news/article/oregon-blueberry-production-experiencing-unprecedented-growth/

 

The blueberry production in Oregon has increased due to a machine they use to improve picking and packaging efficiency. This innovation has created a berry boom. Recent articles on the health benefits of the fruit have increased the consumers desire to purchase the berries. Their health benefits and recent surpluses have resulted in a high demand for the berries. Supply increased due to the technological innovation which decreased the price but the increase in demand due to the health benefits returned the equilibrium back to normal. Thus the equilibrium price remains relatively equal because even though the consumer demand increased, the invention of the new technology allowing the farmers to keep fulfill the demand.

3 Comments »

  1. meederh Said,

    November 19, 2016 @ 2:02 am

    Very interesting! So there was a demand shift in taste, and possibly expectations because it could help with their health? Interesting!

  2. bodenmae Said,

    November 19, 2016 @ 4:20 am

    I wonder if, due to the increased concern with health, more and more people will make blueberries a larger part of their diets. If this is to happen, (which it very well might with the magnitude of this health revolution) equilibrium will most likely lower within coming years. Unless berries are continued to be seen as more of a delicacy than a nutritional must-have, farmers may have to increase production to the extent that they make less money (as what has been seen with larger staple crops within the past few decades). I wonder how long it will take for this to happen; and if berries are just a phase, there may be too much of a surplus. It all depends on what the consumer is told and subsequently desires.

  3. caiq Said,

    November 29, 2016 @ 1:46 am

    This is a good example of demand and supply. Because the advantage of people’s health, the demand of blueberry will increase. And the producer will increase the supply, too. The equilibrium will move to the right and up or down. Because of the taste, the demand will increase. If the expert say something is bad for people’s health or something has some problem of quality, the demand will decrease.

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