The overflow in Queensland took place in the long run of 2010 until 2011; this disaster had a whole lot of impact on Australia economy. The article "Queensland after the Overflow: A Food and Travel Revise" is discussions about how the flood effect on the economy, especially in food industry and offer such as sugars cane, banana. . . This article also talks about how exactly provider and consumer deal with this occurred and concentrate on travel issue in Queensland following the flood. The purpose of this survey is to analysis demand and supply of foods and travel and leisure industry increase or lower after the flood and to analysis elasticity and economic efficiency. And to analysis these concern the monetary models/concepts getting used is demand and supply curve.
The overflow was a major disaster and possessed effected across Australia on the meals industry and tourism industry of the country and there is many changes popular and supply also changes in cost of productions.
Їё Firstly, popular curve, after catastrophe the demand for banana increase due to price increase and variety decrease
Demand curve of Banana following the flood
Demand curve shows the determination to cover a product of consumer, the lower quantity the bigger the price. There is certainly five variables influence on demand are:
Price of relate goods: there may be substitute is the goods can be used to replace another good on the market and match is goods and services consumed together. For example, apply can replace for banana
Consumer income: relate to normal goods such as clothes and second-rate goods such as second hand product
Tastes or preferences: show the interest of consumer in something and this is the point for consumer to choose whether buy the product or other product in the same industry.
Population and demographic: demand for goods and services increase when the populace increase, demographic relate with location, age, gender and family size of consumer.
Expected future price: customer decide when to buy a product base on their expectation, when consumer expect increasing price in the foreseeable future they will increase purchase now
In this situation, the price tag on relate goods (alternative) rise since there is a rise of demand of banana and the substitute for banana could be apple.
Їё Secondly, in supply curve, after the flood, supply decrease because of damage
Supply curve of Banana following the flood
Supply curve shows the relationship between the level of a good and its own price. When the price of a product boost the quantity supplied increase, so when the price of a product decrease the quantity supplied lower. The five important factors affect products are:
Price of input: input is employed to make the final creation, if the price of input raise the price of product will increase
Technological change: new solutions can help produce more outcome with the same amount of input
Price of alternative in development: when the price tag on replacement goods increase, the supply of original goods will decrease
Expected future price
Number of firms on the market: when new firms enter the market, resource will increase
In this situation, the price of input increase scheduled to increase cost of production.
After the flood in Queensland, price of many products have changed, especially in food such as fruits or vegetables due to price up, quality down. This flood also cost Australia agriculture $700 million. Banana plantation has been damaged by the overflow and 75% crop lost and will take 8 months to recover, the consequent of this happen is demand of banana increase but resource has lower because of crop lost and due to a lack of banana in the Australia market and the price has increase higher. Most of bananas in the market come from Queensland and there can be an amount of bananas from New South Wales, these banana looks is not look good but actually the tastes is good, matching to consumer they concern more about appearance so they have to find a substitute good such as apple.
The prices of vegetables also have increased 40% following the flood and strawberry also damaged. In beef market, the price also greater than before the overflow because of increasing demand while resource is reducing. In general, the meals industry of Australia in this time has being shortage because of strong demand and reduction in supply, do to increasing many food and vegetable in the market and take time to recover and reduce the prices.
Another issue in this specific article is the affect of the overflow to the tourism industry in Queensland. We are able to analysis how travellers deal with going to Queensland and the way the travel and leisure industry of Queensland deal with this devastation and what will they do to recover by using elasticity. Elasticity uses to spell it out the responsiveness of consumer to something or responsiveness of your changing to changes in another changing, you can find four types of elasticity:
Їё Price elasticity of demand: is the responsiveness to changing price
Measurement: OR Midpoint formulation: E = Change in Q/Qave x Pave /Change in P
When Ed > 1 you can find elastic
When Ed < 1 you can find inelastic
When Ed = 1 there is certainly unitary elastic
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Їё Income elasticity of demand: procedures how much the number demanded of an good responds to a big change in consumer's income
Їё Cross-price elasticity of demand: measures the responsiveness of Qd for good X to a change in the price tag on good Y
Їё Price elasticity of Source: actions the responsiveness of number supplied to an alteration in price
Travelling is an extravagance good and it is elastic because more delicate or responsive. Following the flood, tourism Queensland has to spend $10 million on plan to entice traveller going to Queensland and Queensland tourism also used other strategy such as lower airfare and free night time accommodation which help the monetary industry in Queensland growing up because in reality people going on christmas to Queensland is more than to New South Wales or European Australia, so Queensland is an improved choice. Australia tourism revenue has lower from $84. 20 billion this year 2010 to $83. 61 billion in 2011. The change in price stretchy of demand show that traveller has stretchy to travel and leisure industry of Queensland and according to the income elasticity, the price of going to Queensland is now cheaper than before so increasing numbers of people with low income can go on trip to Queensland
In general, this disaster has many affects on many regions of companies and Australia monetary such as changes in price of banana from normal to raised since there is a shortage, the consequence of the flood made loss of banana plantation, the demand for banana increase and supply decrease. In tourism, traveller is more stretchy to travelling to Queensland because Queensland travel and leisure has adopted the actual fact and apply positive strategy to try to develop up the economical after failing, show a dazzling sign of growing back economy in Queensland.
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