Essays on Rise in Price of Avocado in Australia Case Study

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The paper "Rise in Price of Avocado in Australia " is a perfect example of a micro and macroeconomic case study. There are various factors that are taken into a concept when determining the market price of a product. These factors can be either internal or external and can occur independently or interdependently. Internal factors are those that directly influence the price of a commodity during its production process whereas the external ones are the other factors in the industry. The ability of the producers to set the price of the commodity they are producing depends on the form of control that they possess towards these factors.

The paper focuses on understanding the microeconomic and macroeconomic concepts relating to price determination by using a case study about the rise in the price of Avocado in Australia during January 2016. The impact of the issue on the various stakeholders that include farmers, distributors, retailers and even consumers will be discussed. Analysis of the economic concepts helps in drawing conclusions and giving recommendations for alternative solutions to the issue. Introduction In Australia, there has been a rise in demand for fruits as people become health conscious.

One such fruit whose demand has been affected by the changing trend is Avocado. The production of Avocado is faced by several challenges some that are internal whereas others that are external. The availability of the fruit in the market is greatly influenced by seasonal variations and other factors in the market. These factors vary depending on the region where the production is being made due to environmental diversity. The trend, however, allows for the constant supply of the fruits in the Australian Avocado market throughout the year.

It also helps in stabilizing the price by avoiding the price fluctuations that can be brought about by variation in the market supply. The various varieties of avocado also contribute to the diversity and continuous supply of avocado to the Australia avocado market.


Han, E. (2016). The truth behind the avocado shortage: growers made 'innocent mistake'. [online] The Sydney Morning Herald. Available at: [Accessed 11 Sep. 2016].

Mandal, R. K. (2007). Microeconomic theory. New Delhi, Atlantic.

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