a. From the above article, identify the factor that affects the demand for saffron. Clearly state how this affects demand for saffron. b. From the above article, identify the factor that affects the supply of saffron. Clearly state how this affects supply of saffron. c. Suppose, under the above impacts in (a) and (b), there was a rise in the equilibrium quantity of saffron in the market. Draw a well-labeled demand-andsupply diagram to illustrate these impacts on the market for saffron. Briefly explain your answer
Why Real Saffron Is So Expensive
Even in the expensive world of spices, saffron stands out. And real saffron can cost you over $10,000 per kilogram.
Saffron is the red stigma of the Crocus sativus. Each crocus has three small stigmas that have to be picked carefully by hand. No machine can do the delicate work required to harvest these thin threads. And it can take 40 hours of hard manual labor to produce just 1 kilogram of high-quality saffron. Rising labour cost supports the price of saffron.
Expansion of healthcare sector is anticipated to remain a driving force for the saffron market in the coming decade. Saffron has crocin and safranal that are known to cure various types of diseases. It is used in several herbal and pharmaceutical drugs owing to rising awareness among consumers regarding health benefits of saffron.
a. From the above article, identify the factor that affects the demand for saffron. Clearly state how this affects demand for saffron.
b. From the above article, identify the factor that affects the supply of saffron. Clearly state how this affects supply of saffron.
c. Suppose, under the above impacts in (a) and (b), there was a rise in the
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