The Market for Maple Syrup

EconEye Admin

4 years ago

This table provides data on the quantity of maple syrup traded and its price:

Between 2020 and 2021, the quantity of maple syrup traded decreased from 1.95 million gallons to 1.54 million gallons. Over the same period, the price of a gallon of maple syrup rose from $40 to $52.

What is the relationship between maple sap and maple syrup?

Because maple sap is used to produce maple syrup, maple sap is called a factor of production.

What happened to the supply of maple sap?

When an early warm spell in Vermont—the top maple syrup-producing state in the United States—shortened the season for collecting maple sap, the supply of maple sap decreased. Because maple sap is a factor of production used to produce maple syrup, a decrease in the supply of maple sap brings a decrease in the supply of maple syrup.

How does a decrease in the supply of maple syrup explain these data?

Click here to watch a short video that explains the answer.

Can another change in demand or supply explain these data?

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Work these questions to check your understanding and get instant feedback.

Answer the following questions to check your understanding of the story.

1) Complete the following statement about how the supply of maple sap has influenced the market for maple syrup:

A decrease in the supply of maple sap brings _____________ in the _____________ maple syrup.

a) an increase; demand for

b) a decrease; supply of

c) an increase; supply of

d) a decrease; demand for

Maple sap is a factor of production used to produce maple syrup.

Does the supply of maple sap change the demand for or supply of maple syrup?

How does a decrease in the supply of maple sap change the supply of maple syrup?

Because maple sap is a factor of production used to produce maple syrup, a decrease in the supply of maple sap brings a decrease in the supply of maple syrup.

2) Complete the following sentence:

When ____________, the equilibrium quantity decreases, and the equilibrium price falls.

a) demand increases

b) supply increases

c) supply decreases

d) demand decreases

When demand increases, the equilibrium quantity will not decrease, and the equilibrium price will not fall. Try sketching the graph.

An increase in supply will get the intended price change, but what happens to the equilibrium quantity?

A decrease in supply will get the intended quantity change, but what happens to the equilibrium price?

When demand decreases, the equilibrium quantity decreases, and the equilibrium price falls.

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