a) Which demand is more elastic, and why: tomato in general or Florida winter tomatoes?
Demand for Florida winter tomatoes is more elastic than tomato in general. This is because Florida winter tomatoes compete with others tomatoes came from other countries and also compete with other substitutes product like other fruits. In the case of tomato in general, there are less substitutes product whereby if the price of tomatoes in general increase, consumers can switch to other fruits but interms of close substitutes, Florida winter tomatoes has more close substitutes that can give greater impact to the change of demand when their price increase because there are a lots of other alternatives which is tomatoes from other countries that consumers can buy.
b) When cold weather destroyed the Florida crop and more tomatoes came from Mexico and greenhouses, what happened to the supply of tomatoes and the quantity tomatoes supplied?
Decrease in supply, it stated in the news that when cold weather destroyed entire fields of tomatoes, the growers (supplier) only can supply less than quarter of 25 million pounds of tomatoes in normal period of time. When there is decrease in the number of seller, therefore it will decrease the supply (supply curve shift to the left). Quantity tomatoes supplied also decrease
c) The news article says the “High demand has driven up prices and wholesalers are buying from Mexico”. What does this statement mean? Did Demand increase or decrease? Is the news article correct?
The statement mean that demand affect the price of tomatoes (increase price), therefore the wholesalers start buying tomatoes from Mexico since the price of tomatoes from that country are more cheaper compared to Florida tomatoes. The demand is increase since the number of buyers increase and due to the factor of taste and preferences whereby consumers like to have tomatoes in their sandwiches. However, the news article is incorrect...