Article Review on Avocado’s Reduced Supply and Increased Demand

Avocado’s Reduced Supply and Increased Demand

The article “Avocado Prices at Record High due to Reduced Harvests” describes how the reduced yields and increased demand for avocado have affected the fruit’s prices in the United States. According to the data provided, the consumption of avocado has significantly increased in the recent past due to the fruit’s great taste and health benefits (BBC, 2017). Unfortunately, the quantity of avocados in the U.S. has dropped, following the decline of the fruit’s harvest in California, Peru, and Mexico – its major producers. Drought, flooding, and the growers’ strike were the main causes of the poor harvest.

Given the above-mentioned circumstances, both the demand and supply curves of avocado are shifting (BBC, 2017). The increase in the fruit’s consumption makes the demand curve shift to the right, while the decline of its import leads to a shortage, hence shifting the supply curve to the left. In line with this, the supply shortage affects the consumers who have a high ability and willingness to buy the fruit. Nevertheless, it is hard to determine the impact of the changes on the equilibrium quantity. The producer surplus, which refers to the gap between the price at which producers are willing to sell the fruit and the equilibrium price, grows due to the latter’s increase caused by the growing demand and the supply shortage. On the other hand, the consumer surplus decreases due to the rise of the equilibrium price. These demand and supply changes will benefit avocado growers since they will sell their produce at higher prices than at the time when there is enough or excessive supply of the fruit. Contrarily, consumers will suffer from the situation at hand because they will have to pay more money to eat the avocado.






BBC. (2017, May 1). Avocado prices at record high due to reduced harvests. BBC News. Retrieved from