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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 do Pollination Costs Bees, Cows, and Nuts: Why is the Price of Almonds Soaring?

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Question: How do Pollination Costs Affect the Price?

Other things being equal, how does an
increase in pollination costs affect the
price? (Begin from P1 in your answer
to the previous question.)
 Does the demand curve shift? If so,
show the new demand curve as D2
 Does the supply curve shift? If so,
show the new supply curve as S2
 Show the new equilibrium price as P2

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

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Question: How do Pollination Costs Affect the Price? Other things being equal, how does an increase in pollination costs affect the price? (Begin from P1 in your answer to the previous question.)  Does the demand curve shift? If so, show the new demand curve as D2  Does the supply curve shift? If so, show the new supply curve as S2  Show the new equilibrium price as P2 Nov. 12, 2013 Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/

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