olive oil: supply goes down, price goes up

[jts]

Prices adjust to where supply and demand are equal. Supply goes down, price goes up.

Here is an example in the news.

price of olive oil soaring

"Price of olive oil soaring after worst harvest in over a decade

Wholesale costs double following ‘black year’ for farms in southern Europe and north Africa"

Like I explained in the thread about minimum wage. Supply of olive oil goes down; price of olive oil goes up. The price of olive oil adjusts to where supply of olive oil and demand for olive oil (at that price) are equal.

A real life example.

[Brant Gaede]

Prices adjust to where supply and demand are equal. Supply goes down, price goes up.

Here is an example in the news.

price of olive oil soaring

"Price of olive oil soaring after worst harvest in over a decade

Wholesale costs double following ‘black year’ for farms in southern Europe and north Africa"

Like I explained in the thread about minimum wage. Supply of olive oil goes down; price of olive oil goes up. The price of olive oil adjusts to where supply of olive oil and demand for olive oil (at that price) are equal.

A real life example.

Price volatility is a search for price-supply stability.

--Brant

[Reidy]

Thales, the first philosopher in history, foresaw a good harvest and leased every olive press he could. His prediction turned out right, and he made a killing.

[merjet]

Thales did so because he had been reproached by others for his poverty, which was alleged to show that philosophy is useless. He showed a philosopher can be rich if he wants, but he had other ambitions. Since the presses he leased were for making olive oil, John D. Rockefeller was not the first guy to corner an oil market!