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| Prices of Napa Cabbage Essay

Prices of Napa Cabbage and Kimchi Changes In 2010. According to the article Surging Kimchi prices bite Korean vendors, the prices of Napa cabbage and Kimchi shoot up in 2010 due shortage in production and supply of Napa cabbage. This shortage in production resulted from unexpected changes in weather. According to the Wall Street Journal, reduction in rainfall in 2010 led to decreased harvest of Napa cabbage, which is used in making Kimchi. According to the forces of demand and supply, decrease in supply of Napa cabbage would result into increase in price of Napa cabbage. Moreover, given that Kimchi is made from Napa cabbage, a decline in supply of Napa cabbage would also lead to a decline in supply, and consequently an increase in prices, of Kimchi._x000D_
The Effects of Change in Price on Quantity Demanded. In my opinion, the change in price led a decline in quantity demanded. This is because the suppliers of Napa Cabbage were charging high prices which the consumers were not willing pay. However, prolonged decrease in supply would lead to a temporary increase in quantity demanded because consumers would anticipate further shortages, and thus demanded for more quantities in order to evade paying high prices in future as the supply further declines._x000D_
Factors that Influenced the Supply of Kimchi during 2010 and how Supply Changed. According to the statement, the supply of Kimchi was influenced by a decline in supply of the Napa cabbage, which is also dependent on the condition of weather. Napa cabbage is a major ingredient of Kimchi. In 2010, the weather was not conducive for production of Napa cabbage. There were heavy rains and short stretches of hot, humid days. This led to a decraes in the harvest of Napa cabbage which is used in production of Kimchi. In other words, the change in weather indirectly affected the supply of Kimchi. In my view, the change in weather resulted into a decline in supply of Kimchi. The change in supply was negative.

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