REACTION PAPER

With Costly Bananas, Apples and

Grapes, Orange becomes favorite Fruit
this season.
 SUMMARY
 The Sudden surge in demand for oranges
was because of the sudden inflation to
the prices of apples and grapes in the
southern part of the country. The
demands for oranges come from the
places like Kerala, Hyderabad, Vizag,
Bangalore and Chennai. On the other
side around, Banana Plantations were
damaged by a heavy rain during the
months of June and July that triggers
the suppliers to raise their Prices.
 SUMMARY
 The Article also explains the preference
of Oranges due to the Low Price being
given to it . The Price of Oranges is Rs40
per Kilogram while the Bananas is
selling at the rate of Rs50-60 per
Kilogram and on the other side around
the Price of Grapes and Apples is double
the Price of Oranges
 EXPLANATIONS:
 As the Law of Supply States, “ When Prices Rise, The
Quantity Supplies will also Rise, and thus there is a
Positive relationship between Price and Quantity
Supplies in the graph.”

 Law of Demand is also Applicable to this Situation, which

states. “Prices Fall down when the Quantity demanded is
high.” A rational consumer will always think to the bigger
picture in which they will find Marginal Benefits rather
than Marginal Cost that Will make their income fell down
when they choose Marginal Cost.
GRAPHS
MARKET FOR ORANGES
MARKET FOR BANANAS
MARKET FOR GRAPES AND APPLES
EXPLANATION FOR THE GRAPHS
Asshown by the different graphs of
Bananas, Grapes and Apples. We
can see the Change on its Supply
and Demand Relationship that They
need to adjust to have an
equilibrium price but not all times
because there are instances that
there is surplus and shortages on
their goods.
 According to But Liaqat Ali, It is early to
predict supply and demand, “ We Have to
wait till January- February when the
demand goes up.” With this statement, It
would bring hope to the Suppliers and
Consumers that they can sell again and
gain an income in the market for grapes
and apples. These Article not only Talks
about the Supply and Demand change but
it can be also relate to the Principle of
Economics that “People respond to
Incentives” and “ The Cost of Something
you Give Up to Get It”
The Other Factor that Changes the
Demand and Supply Curve is the
Principle of Substitutes and
Complements That the Substitute of
Banana is Oranges, It is on how you
understand it yet. For Us, It is
Substitutes, Especially when you are
finding fruits, If there is no supply of
Banana, You would likely prefer
Oranges to fulfill your desires for
Fruits.
 GROUP 1

Christian Amistad
John Philip Castro
Grace Ann Arreglo
Rhea Fernandez
Angelica Aredidon
Kharren Jhoy Mancao