Question

PLEASE TYPE ANSWER & DRAW GRAPH ELECTRONICALLY. ( NO HANDWRITING)

Demand is highest for watermelon in the summer, yet that is also when prices are lowest. Draw a graph (electronically) showing both demand and supply for watermelon in both the summer and the winter (i.e. two demand curves and two supply curves on one graph) that illustrates how this situation could be possible.

Answer 1

Here, the demand curve D(W) represents the watermelon demand in winter and D(S) summer represents the demand in summer. In winter the demand is less and the supply of the watermelon S(W) is also less. That lead to a higher price in the market. In Summer the demand increase and it shift to D(S) ideally the price should have increases but an increase in the supply to S(S) decrease the price. The summer price is P(S) which is less than Winter price P. And summer quantity Q1 is more than the winter quantity Q.