December 4, 2019
An unusually cold and wet potato harvest may lead to a French fry shortage in the US.
Questions
- By how much is the U.S. potato harvest expected to decrease in 2019 over 2018?
- Does a decrease in the potato harvest change the demand of French fries or the supply of French fries?
- Why is the price of French fries in local bars, casual dining chains, and in the frozen aisle at the grocery store expected to rise?
- Explain how the French fry market moves toward its new equilibrium.
- Draw a diagram to illustrate your answers to #4.