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Economic Principles Week 7 Assignment
Read the following article excerpt:
Plant-based diet trend drives consumer demand for alternative mushrooms ABC News, 19 June 2019 https://www.abc.net.au/news/rural/2019-06-19/rise-of-the-alternative-mushroom/11217680
Consumers are pushing demand for alternative mushrooms to new highs as plant-based diets become increasingly popular and people seek nutritious meat substitutes.
Victorian mushroom farmer Jason Crosbie's commercial mushroom growing business began with an interest in nature.
He now harvests about 40 kilogram of shiitake, king brown, oyster mushrooms and lion's mane a week, at his farm in Scotchmans Lead in Central Victoria.
-I noticed the gap in the market and there aren't that many growers of alternative mushroom species around,- Mr Crosbie said.
-Demand is growing, people are more conscious of what they are eating and where they source it from.-
He explained king oyster mushrooms and lion's mane were a popular meat substitute among vegetarians and vegans.
Besides its use for a meat substitute the chairman of the Australian Mushroom Growers Association, Tim Adlington, said consumers turned to alternative mushroom varieties for their health benefits.
Task:
After justifying the appropriateness of its use, use the model of perfect competition to support a discussion of the short run and long run prospects for firms producing ‘alternative mushrooms’, in response to the changed demand conditions.

Editable Microsoft Word Document
Word Count: 724 words including References


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