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    tahira
    A major vegetable producer predicts that prices for fresh produce will remain high for several months due to a shortage of workers for crop cultivation. The producer has nearly halved cucumber production in Western and South Australia due to lack of laborers for planting, tending, and harvesting crops. The article explains this situation using economic theories of labor scarcity and substitution. A shortage of workers has increased demand for cucumbers while supply has contracted, leading to higher prices until equilibrium is restored.

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    Assignment 2 Updated

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    tahira
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    A major vegetable producer predicts that prices for fresh produce will remain high for several months due to a shortage of workers for crop cultivation. The producer has nearly halved cucumber production in Western and South Australia due to lack of laborers for planting, tending, and harvesting crops. The article explains this situation using economic theories of labor scarcity and substitution. A shortage of workers has increased demand for cucumbers while supply has contracted, leading to higher prices until equilibrium is restored.

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    A major vegetable producer predicts that prices for fresh produce will remain high for several months due to a shortage of workers for crop cultivation. The producer has nearly halved cucumber production in Western and South Australia due to lack of laborers for planting, tending, and harvesting crops. The article explains this situation using economic theories of labor scarcity and substitution. A shortage of workers has increased demand for cucumbers while supply has contracted, leading to higher prices until equilibrium is restored.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views3 pages

    Assignment 2 Updated

    Uploaded by

    tahira
    A major vegetable producer predicts that prices for fresh produce will remain high for several months due to a shortage of workers for crop cultivation. The producer has nearly halved cucumber production in Western and South Australia due to lack of laborers for planting, tending, and harvesting crops. The article explains this situation using economic theories of labor scarcity and substitution. A shortage of workers has increased demand for cucumbers while supply has contracted, leading to higher prices until equilibrium is restored.

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    © All Rights Reserved
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    Analytical Media Assessment (Economics)

    Lucinda Jose written an article related to fresh produce prices to stay high for months, says major
    producer slashing crops due to lack of workers at 28 Jun 2021.There are three main point of this
    article first is A major producer predict that the prices of fresh vegetable are rising for a few
    months. Second is the Western Australia and South Australia producer said that the cultivation of
    cucumber have been nearly halved and third is producer says that there are shortage of worker
    for plantation, tend and harvest the cucumber crops. Labor shortage theory is used in this article.
    There are following determinant of labor shortage, Demand growth, supply contraction, and
    government intervention. Labor markets are like goods markets having demand and supply
    curves (Chin and Hamori, 2009). Demand applies in labour markets as follows: A higher salary
    or wage reduces the quantity of labour demanded by employers, while a lower salary or wage
    increases the quantity demanded. So does supply law in labour markets: A higher labour price
    leads to more labour supply; a lower price leads to less labour supply. The shortage of labor
    caused a forced hiring of unqualified candidates, lost production opportunities, and reduced
    business investment and product development (Jia-chang, 2004). The economic principal of
    scarcity is used in this article. Scarcity is a main economic problem in which resources are
    limited and scarce (Mullainathan and Shafir, 2013). In this article labor sources are short for the
    cultivation of cucumber. Due to scarcity, demand increase and the prices of the cucumber remain
    high for few month and create the below situation.
    Explanation: In this diagram, the demand of the cucumber production increase from D1 to
    D2.Supply curve remain the same and price increase from P1 to P2. Under shortage as the supply
    of cucumbers are in shortage but still in high demand but meaning price must rise to meet the
    equilibrium. Cucumbers being elastic as they have substitutes such as zucchini’s, and price has a
    strong effect of cucumbers demand.

    I think the writer very clearly explain the economic principal through application in this article
    she says that cucumber demand increases and its supply decrease and prices are high. Mr.Songer
    says that the producer remain the old supply – demand curve which clearly explain the economic
    theory through the application of the production of cucumber in which lack the supply of labor
    explain the economic problem of scarcity. The other thing which explain clearly that the
    cucumber demand is elastic because it has substitute. Economic theory is also explain when a
    goods has more substitute its demand is elastic (Garbou and Monmarquette, 2011).

    Finally concluded that this article explain the prices of fresh vegetables, cultivation of cucumber
    and the shortage of worker for the plantation, tends and harvest of cucumber. This article clearly
    explain the economic principal and its application through economic problem scarcity and the
    substitute of the goods. The production of cucumber harvest increases in future if the labor
    wages will be high. The higher wages increased the supply of labor through substitution effects.
    The equilibrium price falls as labour supply increases and rises as labour demand increases.
    Reference:

    Chen, G. and Hamori, S., 2009. Solution to the dilemma of the migrant labor shortage and the
    rural labor surplus in China. China & World Economy, 17(4), pp.53-71.

    Jia-cheng, L.I.U., 2014. Analysis of “Labor Shortage” and “Employment Difficulty” in the View
    of Cost-benefit Theory. Journal of Zhejiang Wanli University.

    Lévy-Garboua, L. and Montmarquette, C., 2011. Demand. In A Handbook of Cultural


    Economics, Second Edition. Edward Elgar Publishing.

    Mullainathan, S. and Shafir, E., 2013. Scarcity. Social Policy, 46(2), pp.231-249.

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