Task Description:

Avocados are pricier than ever this Super Bowl season, testing the fruit's popularity as runaway inflation pinches American wallets. A 9-kilogram box of Hass avocados from the state of Michoacan, Mexico's biggest harvester, cost 540 pesos ($26.23) Thursday, according to an index that measures prices from the region. For the time of year, it's the most expensive in data going back two decades. Avocados typically see a price surge in the weeks before the Super Bowl, the biggest day for consumption in the U.S. But this year, demand is booming amid labor shortfalls, higher production costs and wage hikes that have plagued the broader economy. Food companies are betting consumers love the Super Bowl-favorite enough to pay up. "These higher prices will test how strong the demand for avocados really is," said David Magana, senior analyst for Rabobank International in Fresno, California. The supply-chain headaches may be contributing to avocado inflation, but there are currently no fears of shortages or grocery store shelves devoid of guacamole during

the Super Bowl weekend. Shipments from Mexico are plentiful after a bumper harvest last year, according to Rabobank. The Mexican region of Jalisco, which produces 15% of the country's production, also recently received approval to export to the U.S. Americans are eating more guacamole than ever. Per-capita consumption doubled in the 10 years through 2020 to 9 pounds, and could surpass 11 pounds by 2026, said Magana, citing industry projections. Still, this is low compared to the per capita consumption of Mexico, where it's close to 20 pounds a person. "If we continue to see higher prices despite better availability in the next couple of months, that'll tell us the demand is there -- not just for Super Bowl weekend, but year-round," Magana said. Task: Utilise the model of demand and supply to analyse the market for avocados in the U.S. at the time of the article. Clearly explain the impacts on demand and on supply, as well as the resulting impacts on the outcomes of price and quantity at the time of the article. Ensure that you use diagrams where relevant to support your answer, and make sure to use key terminology and course concepts where appropriate.