500 words.At least 2 referencesAnswer the two questions
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Lemon shortage and high demand for
fresh fruit sends prices skyrocketing
By Jessica Schremmer 11 January 2019 at 5:56 am
Summertime means seafood and cocktails with fresh lemon for many across
Australia, but prices for the fruit have skyrocketed.
A shortage of Australian-grown lemons has caused supplies to fall and prices to spike.
The normal retail price is about $3.99 to $4.99 per kilo but as most lemons currently
have to be imported, the fruit is selling for as much as $8.99 per kilo on supermarket
Citrus Australia chairman Ben Cant said the market was known to tighten during
summer but the weak Australian dollar was also contributing to soaring prices.
“In the Christmas period we run predominately on imports,” Mr Cant said.
“A large degree of the fruit this year has been brought in from the
United States and it’s a higher procurement cost for the importers.”
In the past, they brought in a higher degree of Spanish and Egyptian lemons, which
has been cheaper, but they’ve had some quality issues, with mouldy fruit in the
“So I think that from my discussions, the safe bet is to buy the US fruits, spend a bit
more money and get a good product.”
Extreme heat reduces Australia’s production
Sunlands citrus grower Mark Doecke in South Australia’s Riverland said the lemon
shortage was simply a problem of supply and last year’s extreme heat affecting the
“Lemon sales have grown a little bit, there is a bit of extra demand, but supply is the
problem,” Mr Doecke said.
“We are in a minor picking time, and last year in February-March, when
the fruit should have set, what we would be picking now, they didn’t
He said the extreme heat last February was one of the major causes for the fruit not
to set, resulting in less fruit produced.
“Consequently, we have a very short supply of lemons at the moment and that’s why
the prices are high in the supermarket,” Mr Doecke said.
He said most lemons in South Australia were picked in July and August but they
picked up to five times a year, including at minor picking times.
Mr Cant said lemon consumption was increasing and traditionally, Christmas was a
Unfortunately this is just the time of the year, due to mother nature,
where we can’t produce enough lemons,” he said.
“Lemon trees yield most of their crop in winter, so high availability is through March
Prices expected to fall, more trees being
Marketing and business development manager for SA Produce Market Nadia Boscaini
said they were currently selling lemons from the Adelaide Hills but were expecting to
see prices fall when ample supplies from Queensland came onto the market.
Mr Cant said Queensland lemon growers would start picking in February and once
the fruit came onto the market, prices were expected to drop immediately.
And with lemon consumption increasing, so is production across Australia.
Mr Doecke said across the southern growing region in the past three years farmers
had seen about a 30 per cent increase in the area planted with lemon trees.”
There are a lot of lemons that have gone in so as they come into production, supply
will meet demand in the future,” he said.
Please read the article attached and answer the questions:
1. Based on the determinants of price elasticity of demand, is demand for lemons
price elastic or inelastic, for a bakery that makes lemon tarts? [5 marks]
2. Based on your discussion of elasticity, Illustrate and analyse the effect on total
revenue of the farmers in the lemon market when more trees are being planted.
Your assignment will also be assessed on how effective you can communicate with
the reader, i.e.how well you have presented your arguments and ensured your
analysis is logical and consistent.
Consequently, 2 marks will be awarded for effective writing including proper
grammar, referencing and formatting. Importantly, make sure you use appropriate
diagrams in your analysis.
Presentation and referencing: 2 marks
TOTAL MARKS for this part of the assignment: 13 marks
Please use the following checklist to make sure you have done your
1. Provided clear definition of key economic terms.
2. Included well-drawn diagram/s (where appropriate) that are clearly
labelled (both axis and curve/s) for each question.
3. Discussion and explanation of diagram is included in the answer.
4. Answers provided are related to the topics that have been taught in
5. Questions are answered individually and NOT in an essay form.
6. Within the 500 word limit (+/- 10%). [NB: Anything <450 words would mean that you have not provided clear/detailed explanation of the concepts]. 7. Check spelling and sentence structure. 8. In-text referencing. 9. Referencing list ... Our essay writing service fulfills every request with the highest level of urgency. attachment