Article a microeconomic or a macroeconomic issue

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Reference no: EM132479982

As humanity's most pressing health crisis plays out across the globe, Australian consumers appear to be rushing to boost their immunity with locally grown vegetables.

Key points:

  • Demand for locally produced fruit and vegetables is strong amid coronavirus fears
  • Some WA producers say it is the best year they have had in a decade
  • On the flip side, the global health crisis could lead to a shortage of overseas workers

Broccoli grower Brad Ipsen said demand for the vegetable was the strongest he had seen.

Mr Ipsen, who is based in the West Australian food bowl of Manjimup, works in one of the few industries enjoying a windfall from the COVID-19 pandemic.

"This season has been really good ... with the latest impacts with coronavirus and health issues, vegetables are a vitamin pill themselves," he said.

"But I think that's widespread too, other people are telling me the same thing. "Prices have been strong across all vegetable commodities - demand has been good."

Fruit and vegetables help prevent illness

Dieticians said they were encouraged by consumer behaviour given the health benefits in preventing illness and disease.

Margaret Hays from the Australian Dieticians Association said people underestimated the importance of consuming fresh fruit and vegetables to prevent becoming sick.

"Eating fresh fruit and veg gives us a really big intake of antioxidants, which is really helpful for boosting our immunity," she said.

"My advice to people who are trying to prevent coronavirus getting to them and to their families, is to eat as healthy as you can.

"Get two pieces of fruit a day, lots of vegetables - up to five servings a day - lean meats, fish, chicken, vegetarian sources of proteins - nuts and seeds - and low-fat dairy products."

1) Is the issue discussed in the article a microeconomic or a macroeconomic issue? Justify your answer.

2) Has the market demand for fruit and vegetables increased or decreased? As a result, what will be impact of this on market price and quantity demanded for fruit and vegetables? Provide an appropriate demand and supply graph showing the outcomes.

3) Identify a non-price determinant of demand for fruit and vegetables from the article and explain how this could affect the market price and quantity demanded for the items.

Reference no: EM132479982

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