Fruit Market Survey

The results show a general standard of living of those who participated in the survey. 80% of those who were surveyed replied that they often visit one of the five shops. Almost half of the people who were surveyed visit Carrefour or Tai Yang Market, whereas only 6% visit Takashimaya. This suggests that many people tend to avoid shops that sell fresh fruits at high price levels.

The chart shows that 88% of those who were interviewed visit the shop more than once per week. This suggests that fresh fruit is one of the basic necessities that people consume frequently. Goods that are necessary to consumers will usually have a lower PED (Price elasticity of demand) than that of luxury goods.

80% of the consumers usually go to the

Although this hypothesis is not totally correct, it seems to be valid for several items, given the fact that pure perfect competition does not exist in the real world. Gubei, where there are more than ten fresh fruit shops, is a small residential area of 136.6 hectares. Given this fact, it could be reasonably argued that fresh fruit market is in perfect competition in terms of the number of firms. Besides, all the producers have substantial knowledge about the fresh fruit market, such as the tastes and preferences of consumers, marketing techniques and brand awareness. Lastly, apart from Takashimaya, all the firms answered that barriers to entry and exit are fairly low. All of these responses correspond with the criteria of a perfectly competitive

To begin with oranges and pears, the major thing to consider here is whether or not the products are imported. As we all know, imported goods are much more expensive. Taking this into account, there isn’t a drastic difference between price levels amongst the shops. As a result, it seems that the market of oranges and pears is somewhere between a monopolistic market and a perfectly competitive market. Interestingly, information about bananas in Gubei lead to a straight-forward conclusion. To be specific, the price level of bananas in Hao Guo Duo, City life and Carrefour is almost exactly the same. On top of that, all the shops are selling exactly the same type of bananas, thus it could be confidently concluded that bananas are competing in a perfectly competitive