Showing posts with label Substitution Effect. Show all posts
Showing posts with label Substitution Effect. Show all posts

Saturday, August 30, 2014

Discrimination is alive and well against fruits and veggies in the EU.

The European Union (EU) has strict standards (see HERE) when it comes to the sale of certain fruits and vegetables.

In order to be sold in markets they must meet not only quality specifications but "appearance" standards as well.  This results in LOTS of food waste because the "Ugly Fruit and Veggies" never make it to the selves.

This article is about a woman in Portugal who is taking on the problem of "Lookism" in produce section.

Portuguese Food Co-op Fights Back Against EU-Mandated Waste

Baylen Linnekin speaks with Maria Canelhas from Fruta Feia, which has saved literally tons of great food from the garbage.


Seems like this is a way to keep prices high as well.  There is plenty of ugly produce that is perfectly edible and meets all the standards for consumption.

Ugly Produce is a suitable substitute for "Beautiful Produce".  A face palm to the concept of Substitution Bias.

Guess this guy below would not be welcome at a super marche' in Paris.  Looks like he could whoop up on the other veggies in the bins.

I have had this for awhile. I lost track of the source
NOTE: I corrected several spelling errors. Note to self: Press.Spell.Check.  :)

Wednesday, July 23, 2014

Substitute versus Substitution Effect. Only one word difference but the difference is BIG.

One of the more difficult things to teach to students is the difference between a Substitute (good or service) and the Substitution Effect that the Substitute good or service has on demand for the good that is subject to substitution.  Got that?  

Here is a terrific article on the rise in beef prices and its impact on the market for chicken.  Below I created some slides that hopefully will make the distinction between the two key micro-economic concepts more clear.  Use as you like!  Let me know if you see any errors or how I can refine any aspect.  Thanks.

Beef prices hit wallets, boost poultry's appeal (HT: Big Picture Agriculture)

There's no beef about it, prices for red meat are surging and demand for chicken is benefiting. 
Chicken's versatile appeal and its perception as a good source of protein that's better for you than red meat are also driving sales, RBC Capital Markets' David Palmer said in a phone interview. 
"Chicken is really hot right now, and poultry is viewed as a source of protein that's relatively less inflationary," Palmer said.







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