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the claim
Substitutes in production alter the standard microeconomic supply and demand equilibrium
the verdict
CONTESTED
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refutedsupported
the weight of evidence
2 sources for · 0 against

The listed sources discuss specific economic studies on biomass production and organic fruit and vegetable demand, but they do not sufficiently establish or support the broad microeconomic claim that production substitutes universally alter standard market equilibria.

Evidence for · 2
2021 · cited by 6
US consumers currently eat less fruits and vegetables (FV) than recommended by dietary guidelines. Inadequate FV consumption exists alongside rapid growth in demand for organic FV. Since the viable production area of FV is finite, organic and conventional FV are linked in production while serving as substitutes in consumption. Rising purchases of organic FV may have important implications for prices and quantities consumed in the conventional FV market. In this paper, we analyze the implications of rising demand for organic FV when organic and conventional FV are linked in supply and demand. More specifically, we use a multi-market equilibrium displacement model to examine the impact of rising demand for organic produce on prices and total quantities consumed of conventional and organic FV under two scenarios: product differentiation (i.e. organic versus conventional produce) while assuming that consumers have identical preferences that can be represented by a single market demand function for each good; and product differentiation with segmented markets, which allows for two types of consumers with unique demand functions. Both scenarios were simulated with and without an offsetting shift in demand for conventional FV. Our simulation results indicate that the increasing demand for organic FV may result in decreased consumption of combined conventional and organic FV, and that the direction of changes in FV consumption may vary by consumer segment. Under the most realistic assumptions, when one segment of consumers increases its demand for organic FV, this segment's overall consumption of organic plus conventional FV falls; the other segment's overall consumption rises. We provide sensitivity analyses and discuss caveats and directions for future research.
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The analysis

rails:sufficiency:supported:for=2+0p:against=0+0p | v55:sufficiency | v55:coherence_repaired:what=both

More for · 1
2018 · cited by 3
This study aimed to analyze the evolution of the production and price of biomass from native and planted forests of the state of Paraná (Brazil), between 1998 and 2015, based on the behavior of the prices of the products, according to variations of their supply or demand. The annual rates for growth of the price and quantity produced were calculated and related to the displacements of the supply and demand curves of the products. The results indicated a decrease in the quantity and an increase in the biomass price for native forests, which caused a shift in the supply curve to the left. For the biomass of planted forests, the demand curve shifted to the right due to the demand increase of this product for energy production. The behavior of both curves indicated a substitution of the biomass from native forests to biomass from planted forests due to factors related to the increase of environmental protection regarding the native forests located in the state of Paraná
Everything we examined (2)
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  1. EVOLUTION OF THE PRODUCTION AND PRICE OF FOREST BIOMASS FOR ENERGYpeer-reviewedno side taken
  2. What are the overall implications of rising demand for organic fruits and vegetables? Evidence from theory and simulationspeer-reviewedno side taken
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