Answer to Question #81746 in Microeconomics for Eric Vasquez

Question

In the case of strawberries, however, the reverse is true: The price of strawberries is lower in the peak season than it is in the winter season. In the winter, which is the peak season for winter coats, the price of winter coats is typically higher than it is in the summer

Answer 1

During the winter season, the price of winter coats is higher than in summer due to the law of supply and demand. During the summer season, the demand for the winter coats is low, so is its price. During the winter season, the demand for winter coats is higher than the supply of the winter coats that makes the price of the winter coats to be high since there is no discount given.

On the other hand, in case of strawberries, the price of strawberries is lower in the summer season compare to the winter season. During the summer season, the supply of strawberries its higher than the demand that influences the price of strawberries, which makes them to be sold at a lower price. However, during the off-season when the supply of strawberries is low, the demand is higher that makes the price to be higher than the peak season.