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Economics for your Classroom from
Ed Dolan’s Econ Blog
Nuts, Cows, and Bees:
Why the Price of Almonds
is Soaring
November ...
Almonds are Good, and Good for You

 Almonds are delicious!
 They are healthful!
 High in healthy monosaturated fats
 ...
But Almond Prices are Soaring. Why?

 This chart shows the prices of three kinds of almonds grown in California
 Dependi...
Cows’ Milk is Out, Almond Milk is In
 Changing consumer tastes are one factor
affecting almond prices
 Americans are dri...
Question: How Does a Change in Consumer Preference Affect Price?

How does the growing consumer preference
for almond milk...
Answer: How Changes in Consumer Behavior Affect Price
 Increased preference for almond products
means that consumers are ...
Who Produces Almonds?
 California is by far the
biggest producer of
almonds, accounting for
about 80 percent of the
globa...
The Essential Roll of Bees

 Bees are essential to pollination of
California’s almond crop
 More than 1.5 million hives ...
Question: How do Pollination Costs Affect the Price?

Other things being equal, how does an
increase in pollination costs ...
Answer: How Higher Pollination Costs Affect the Price
 Other things being equal, an increase
in pollination costs will me...
The Bottom Line

Expect almond prices to remain high at
least until a solution is found to the vexing
problem of dying bee...
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Question: How Does a Change in Consumer Preference Affect Price?

How does the growing consumer preference
for almond milk affect the price of
almonds?
 Does the demand curve shift? If so, show
the new demand curve
 Does the supply curve shift? If so, show
the new supply curve
 Show the new equilibrium price

Nov. 12, 2013 Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/

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Question: How Does a Change in Consumer Preference Affect Price? How does the growing consumer preference for almond milk affect the price of almonds?  Does the demand curve shift? If so, show the new demand curve  Does the supply curve shift? If so, show the new supply curve  Show the new equilibrium price Nov. 12, 2013 Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/

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