In short-term producers can take the benefit because they could gain profit from the high price. In long-term, economics will face the excess supply due to the firms that produce lots of avocados to gain their profit. This means that the producer won’t be able to sell all the products and lead to surplus. Meanwhile, not all of the consumers will be able to buy the avocados that have a high price such as people who have low income and poor people. In short-run for the government could still handle with the excess supply by pay the farmers not to produce or destroyed the products and buy the surplus. In long-run the government will face the high price to pay for the farmers and destroyed them. Moreover, this method will also cause a waste of resources and for the surplus that the government kept, they could be rotten and therefore couldn’t be used in time of shortage. These situations all cause a burden on
In short-term producers can take the benefit because they could gain profit from the high price. In long-term, economics will face the excess supply due to the firms that produce lots of avocados to gain their profit. This means that the producer won’t be able to sell all the products and lead to surplus. Meanwhile, not all of the consumers will be able to buy the avocados that have a high price such as people who have low income and poor people. In short-run for the government could still handle with the excess supply by pay the farmers not to produce or destroyed the products and buy the surplus. In long-run the government will face the high price to pay for the farmers and destroyed them. Moreover, this method will also cause a waste of resources and for the surplus that the government kept, they could be rotten and therefore couldn’t be used in time of shortage. These situations all cause a burden on