An article in The Economist (2015) described how the price of Longjing Green Tea in Hangzhou Zhejiang in China had increased 30-fold between January to April 2014. The article noted that, due to low prices for this particular tea in the previous years, the amount of land set aside for growing the tea in Hangzhou, Zhejiang in the current season had been halved. As well, some scientific research indicated that this particular green tea is an effective antidote to the swine flu that had been spread out in some regions in China.
Explain why the price of Longjing Green Tea has increased.
Discuss what is likely to have happened to the quantity of tea produced. Use D-S diagrams where required to illustrate your answer.
An article described how the price of Longjing Green Tea in Hangzhou Zhejiang in China had increased 30-fold between January to April 2014. The article noted that, due to low prices for this particular tea in the previous years, the amount of land set aside for growing the tea in Hangzhou in the current season had been halved. As well, some scientific research indicated that this particular green tea is an effective antidote to the swine flu that had been spread out in some regions in China.
Explain why the price of Longjing Green Tea has increased.
Discuss what is likely to have happened to the quantity of tea produced. Use D-S diagrams where required to illustrate your answer.