Ch. 3 Introduction to Demand and Supply - Principles of Microeconomics 2e | OpenStax
Principles of Microeconomics 2eIntroduction to Demand and Supply
Organic food is increasingly popular, not just in the United States, but worldwide. At one time, consumers had to go to specialty stores or farmers' markets to find organic produce. Now it is available in most grocery stores. In short, organic is part of the mainstream.
Ever wonder why organic food costs more than conventional food? Why, say, does an organic Fuji apple cost $1.99 a pound, while its conventional counterpart costs $1.49 a pound? The same price relationship is true for just about every organic product on the market. If many organic foods are locally grown, would they not take less time to get to market and therefore be cheaper? What are the forces that keep those prices from coming down? Turns out those forces have quite a bit to do with this chapter’s topic: demand and supply.
Section URL: https://openstax.org/books/principles-microeconomics-2e/pages/3-introduction-to-demand-and-supply