Identification of Economic Concepts Essay

Published: 2020-02-08 23:02:59
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Economics is all about dealing with Scarcity which is defined as the problem of infinite wants of the buyers to the finite number of resources (McConnell, Flynn and Brue). It is actually the paucity that points out the phenomenon that not all the needs and wants of the society can be fulfilled as there are finite resources to the infinite wants and needs of the society. There is no society in the planet which is self-sufficient in all sorts of resources. In this article the fruits, vegetables and utilities essential in the winter season are scarce because of the limited production.

This season of winter is regarded as the peak harvest season for many Florida crops such as tomatoes, strawberries, blackberries etc. These fruits and vegetables are still in the field due to extreme level of cold. In the winter season these vegetables are demanded more and in case of not harvesting these vegetables would become scarce. Concept#2 ¢ Correlation It is a relation between two events or two sets of data indicates only that they are associated in some systematic and dependable way (McConnell, Flynn and Brue).

For example, we may find that when variable X increases, Y also increases. Here several days of the coldest temperature South Florida has seen in years are threatening to ruin orange groves, cucumber fields and tropical fish ponds across the state. So the weather in South Florida is correlated to the cultivation of crops. Concept#3 ¢ Supply: Supply is defined as the production of goods and services to the market when the price is high (McConnell, Flynn and Brue). The reason behind the supply of the goods in the market when the prices are high is the possibility of the increase in the revenue.

The limits of production are based upon the availability of the productive resources or capital stocks of the economy. These resources and capital locks include the natural resources, labor etc. A stable, secure and established economy possesses the maintaining ability along with social capital. Less production of resources affects the supply as well. As it has been mentioned in the article that 90% of the oranges and grapes on 122-acre orchard are damaged, this shows the decrease in the supply.

As orange is considered to be the fruit which is more demanded in winter season, In Florida the prices of oranges an other fruits will increase because of the low production of these fruits. Concept#4 Demand: Demand is said to be the amount of good of service which is required by the buyer (McConnell, Flynn and Brue). In other words Demand could be defined as the schedule or a curve showing the various amounts of products and commodities could be purchased by the willing and able consumers during a specified period of time, other things equal (McConnell, Flynn and Brue).

The law of demand states that the demand will be less if the price of the good is high, if all factors remain equal. The temperature of the water is increasing as it has been noted in the article that 52 degrees is a critical level for the fishes such as angelfish, mollies, tetras etc. This would decrease the fisheries which is required as per the demand of the people. In this way the price will be increased. In a similar way the fast the demand of electricity will increase along with the consumption of white meat which is most demanded by the buyers in the winter season.

Concept#5 ¢ Price: Price is defined as the amount of money it exchanges for (McConnell, Flynn and Brue). Price is the reflection of the supply and demand. A lot of people confuse this word with the value. There are many differences between price and value. The price of any commodity or utility is noted by the value of the capital and with the comparison to the prices of other commodities. Price is an obstacle that deters consumers from buying. The higher the obstacle, the less of a product will buy; the lower the obstacle, the more they will buy.

Since the demand of fruits and vegetables will be rising, keeping the supply constant, so the price of these products will definitely increase. However if the supply is increased, the possibility of price reduction will be high. Concept#6 ¢ Opportunity Cost: Because the resources are scarce relative to the unlimited wants to satisfy, people must choose among alternatives. More electricity means fewer other products. The amount of other products that must be forgone or sacrificed to obtain 1 unit of a specific good is called the opportunity cost of that good (McConnell, Flynn and Brue).

In the case of Florida, the extra amount of electricity that is going to be produced because of the high demand of electricity heating will obviously be made on the cost of something else. The energy that had to be spent on making some other product is not being used in the production of extra electricity. Concept#7 ¢ Economic Growth: This is one of the economic goals that are widely accepted in the United States and many other countries. It clearly says to produce more and better goods and services or more simply, develop higher standard of living (McConnell, Flynn and Brue).

In the case of South Florida, the cultivation of crops is already reduced due to low temperature. Florida produces 70% of fruits and vegetables, but because the cultivation is not done and most of the crops are still in the field, it will badly affect the economic growth. Furthermore due to this condition, the employment level will be disturbed and the price level will be destabilized. In other words, the economic growth of the country will be effected by the unexpected low temperature condition of South Florida.

Works Cited

McConnell, C, S Flynn and S Brue. Economics. New York: McGraw-Hill College, 2008.

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