# Supply & Demand Impact of SW US/Mexican Freeze: Prices Rise for Imported Produce

• jalen
In summary, a freeze in southwestern U.S. and Mexican fields has resulted in damaged crops and inflated prices for imported produce such as lettuce, broccoli and cauliflower. This has caused farmers in France to plant fast-growing lettuce, broccoli and cauliflower and import them to the U.S. The freeze has caused a shift in the demand and supply curves, resulting in an equilibrium price increase.
jalen
A freeze in southwestern U.S. and Mexican fields has resulted in damaged crops and inflated prices for imported produce such as lettuce, broccoli and cauliflower.

Describe how this would be interpreted on a supply and demand diagram. Do not draw graph.

*Please include one(if you can) so I can have a better understanding. =)

jalen said:
A freeze in southwestern U.S. and Mexican fields has resulted in damaged crops and inflated prices for imported produce such as lettuce, broccoli and cauliflower.

Describe how this would be interpreted on a supply and demand diagram. Do not draw graph.

*Please include one(if you can) so I can have a better understanding. =)

Draw a graph indicating what you think would happen (then describe it a bit). I can check over it for you to make sure it's correct.

Break it into steps:
1. Freeze ---> crop failure: what happens to either demand (D) or supply (S)?
2. Describe how what happened to D or S results in higher price.
3. Describe why importers find it profitable to sell in the U.S. although they did not find it profitable before the freeze (e.g. last year, when there wasn't a freeze).

[I am not sure the following is part of the hypothetical, you may want to think about it:]
4. What happens to either of D or S if, as a result of all of the above, French farmers plant fast-growing lettuce, broccoli and cauliflower and import them to the U.S.?

1. Price and revenue will decrease(therefore inelastic)
2. Less supply therefore higher demand which results in higer price (D and S will shift to the left)
3.Higher demand, I think...
*less is supplied at every price

EnumaElish said:
Break it into steps:
1. Freeze ---> crop failure: what happens to either demand (D) or supply (S)?
2. Describe how what happened to D or S results in higher price.
3. Describe why importers find it profitable to sell in the U.S. although they did not find it profitable before the freeze (e.g. last year, when there wasn't a freeze).

jalen said:
1. Price and revenue will decrease(therefore inelastic)
2. Less supply therefore higher demand which results in higer price (D and S will shift to the left)
3.Higher demand, I think...
*less is supplied at every price

EnumaElish question 1: Freeze ---> crop failure: what happens to either demand (D) or supply (S)?
jalen answer 1: the demand curve __________. Or: the supply curve _________. [Hint: it's either the demand or the supply that shifts, not both. Which do you think will shift, demand or supply?]

EnumaElish question 2: Describe how what happened to D or S results in higher price.
jalen answer 2: Since the demand curve __________ (or the supply curve _________), the equilibrium price increased.

EE question 3: Describe why importers find it profitable to sell in the U.S.
jalen answer 3: Since the price increased, importers find it profitable to sell in the U.S. although they did not want to sell it at a lower price before the freeze.

Listen to Economist and draw a demand & supply diagram. Move one of the curves as in jalen answer 1. (The result should be an increase in equilibrium price.)

Last edited:
jalen answer 1: the demand curve shifts to the right

jalen answer 2: Since the demand curve increases, the equilibrium price increased.

I'm not sure how to include a graph so I'll explain how it's suppose to look like. The supply will remain the same and the demand will shift to the right resulting in a new equilibrium price. I hope I explained it the way I pictured it to be...

Last edited:
jalen said:
jalen answer 1: the demand curve shifts to the right
A right-shift in demand means that at a given price, more quantity will be demanded after the freeze than before the freeze. Can you explain why? [Are you sure that this is the right answer?]
The supply will remain the same
What does a point on the supply curve mean? Pick any point on the supply curve, say (qs1, p1) and tell me what qs1 means in relation to p1.

Then do this on a demand curve. Pick any point on the demand curve, say (qd1, p1). What does qs1 mean in relation to p1?

1)the supply decrease due to the bad weather therefore shift to the left
b)the price increase

I'm not sure if this is relevant but...quantity demanded decreases*

## What is supply and demand?

Supply and demand is a fundamental concept in economics that refers to the relationship between the availability of a product or service (supply) and the desire or need for that product or service (demand). This relationship can have a significant impact on the market price of a product or service.

## What is the impact of the SW US/Mexican freeze on the supply of imported produce?

The freeze in the Southwest US and Mexico has significantly reduced the supply of imported produce. The extreme cold weather has damaged crops and disrupted transportation, making it difficult for produce to reach the market. This decrease in supply has led to an increase in prices for imported produce.

## How does supply and demand impact the price of imported produce?

When there is high demand for a product (in this case, imported produce) and low supply, the price of the product will increase. This is because consumers are willing to pay more for the limited supply of the product. On the other hand, when there is low demand and high supply, the price of the product will decrease as there is an excess of the product in the market.

## Are there any other factors that can impact the price of imported produce?

Yes, there are other factors that can influence the price of imported produce. These include the cost of transportation, labor, and packaging, as well as government policies and regulations. Natural disasters, like the SW US/Mexican freeze, can also have a significant impact on the price of imported produce.

## How long will it take for the prices of imported produce to return to normal after the freeze?

It is difficult to predict exactly how long it will take for the prices of imported produce to return to normal after the freeze. It will depend on the severity of the damage to the crops, the speed of recovery, and any other unforeseen events that may occur. However, as supply increases and demand decreases, it is likely that prices will gradually return to normal over time.

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