Economics/supply and demand and prices
QUESTION: If a new farmer starts a new say 5000 acre orange farm in Florida or 5000 acre peach farm in Georgia would more supply immediately lower prices or would it not really make a difference as it's not much more supply than before and be insignificant. I can see how it would be different for grain crops like corn and wheat as there are much more farms of those crops and I can see how they can be more sensitive
ANSWER: Thank you for your query. I do apologize for the delay in responding. Now, you are asking about price elasticity, right? You may want to take a look at the type of good, in this case a perishable fruit, and, the price elasticity of demand for such product. I do apologize, but, should this be a homework question, as it appears to be, I do not answer them. Good luck.
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QUESTION: No it's not a homework question and I was asking about how 5000 acres more of oranges out of I don't know 100,000 acres(guess) would affect it's price on a large scale and if it would significantly affect anything. I was asking about how sensitive supply and demand is.
Thank you for your follow up. With the info you are providing, without knowing the yield per acre and the type of orange you are referring to, it is not possible to provide you with an answer, i.e. the price elasticity of the demand for oranges.
You may want to contact the growers association in Georgia and Florida. They may be able to assist you with more info.
I am sorry I cannot be of further assistance at this time.