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Tuesday 23 November 2010

Unit 1: Mistletoe & Cider an example of Joint Supply!

So it would seem there is a connection between cider and mistletoe - beyond drinking too much of one before disgracing yourself under the other at Christmas parties.
This article in The Daily Mail suggests that the booming cider sales of recent years led to a big increase in demand for apples (derived demand) and the widespread replanting of apple trees. Now that we are reaping the bumper apple harvests we find that we have bumper harvests of mistletoe too...why? Because mistletoe is a parasitic plant that loves to grow on the soft bark of apple trees. You learn a new thing every day!

Q Think about how the demand for Cider would effect the price of misteltoe (ie how would it change mistletoes demand or supply conditions)

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