Question:
In the last few years thousands of honeybee colonies have vanished, a result of bee colony collapse disorder (CCD). Roughly one-third of the U.S. food supply including a wide variety of fruits, vegetables, and nuts depends on pollination from bees. The decline of honeybees threatens $15 billion worth of crops in the United States. The decrease in pollination by bees has decreased the supply of strawberries, raspberries, and almonds, leading to higher prices for these ingredients for ice cream. The higher prices for berries and nuts have increased the cost of producing food products, such as ice cream, increasing their prices as well. Figure 4.15 shows the effects of the decline of the bee population on the market for ice cream. Increases in the prices of ingredients (berries and nuts) increase the cost of producing ice cream, shifting the supply curve upward. As a result, the equilibrium price of ice cream increases. The collapsing of bee colonies is a mystery. The ice cream maker Häagen-Dazs donated money to Pennsylvania State University and the University of California, Davis to support research exploring the causes of CCD and possible solutions. To increase consumer awareness of the problem, Häagen Dazs launched a new flavor, Vanilla HoneyBee.
Transcribed Image Text:
New supply Demand Initial supply 을 $11 0 45 55 Gallons per day (1,000)