I hope someone can answer this, I am troubled with it.
How does economics actually work like this. Demand, supply, price, I know all that.
Peanuts are quite nice. Cashew nuts are much nicer. Cashew nuts are more expensive than peanuts.
You can therefore assume that peanut supplies are more plentiful than cashew supplies. It could be coupled with cashew nut demand, but only after considering supply of both.
So the obvious conclusion must be that peanuts are cheaper because there is more supply. But the fact remains that cashew nuts are far nicer.
So, here is the killer question. If cashew nuts were supplied in larger quantities than peanuts, would they be cheaper?
Sorry, that wasn't the 'killer question'. This is:
If peanuts were less available than cashew nuts, and therefore peanuts were more expensive than cashew nuts, would peanuts taste better than cashew nuts?
I might need a drink.
Scunner
