Part of the syllabus: Microeconomics
Source: ABC – Australian Broadcasting Corporation
Date of the article: 2016-01-20
Link to article: Avocado prices hit record highs with increased demand and scarce supply
An Economics Internal Assessment Article Microeconomics part of the syllabus. The article talks about avocado prices rising due to changes in supply and demand.
Possible talking points:
- A supply and demand diagram explaining of what is happening to supply and demand of avocados in Australia might be a good start of your economics internal assessment
- Reasons for decreasing supply of avocados are mentioned in the article, quoting or rephrasing could be a good way to show engagement with the article
- Causes of growing demand for avocados are also in the article; incorporating those into your economics internal assessment shows the examiner you understand the reasons why the demand curve moves
- Strongest evaluation point would probably be the differences in price elasticities of demand and supply; see if there is any evidence about those in the article (hint: last sentence of the article); if not – you might try some educated speculation
- For further evaluation you might try weighing the advantages and disadvantages of rising prices of avocados for consumers and producers
- The article also talks about the future of the market – you can possibly use this for your evaluation; could rising prices now lead to oversupply later? Again, the article says that there are plantings going into the ground to support the growing demand…
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Check out these guides on how to score high on your IB economics internal assessments:
