Question

A march 25, 2010 article at reported, "strawberry farmers in florida are facing such a sharp collapse in prices for their berries that many are deciding to simply leave huge tracts of the berries to rot in the fields. . . wholesale prices that were $17 to $19 for a flat of eight containers have now fallen to $5 to $6 a flat." can't a strawberry farmer simply charge a higher price for their strawberries?

Answer 1

Charging a higher price for strawberries may not be feasible for farmers due to factors such as decreased seed cost, government tax reductions, and market demand.

Step-by-step explanation:

In this situation, charging a higher price for strawberries may not be feasible for the farmers due to various factors. One factor is the decrease in the cost of strawberry seeds, which could have led to an increase in supply and subsequently lower prices. Additionally, if the government provides tax reductions to fruit farmers who plant a minimum number of plants, this could also lead to increased competition and lower prices. Lastly, market demand plays a role in determining prices, and if consumers are not willing to pay a higher price for strawberries, farmers may not be able to charge more.