Watch this video on the production, costs and markets associated with harvesting Acai berries from Brazil and answer the following questions.
1. According to the video, the typical price of for a pound of acai is $0.20. This is the price that workers (or the direct producers) receive whereas the price of a small bowl of acai in the U.S. is $7. Why do workers receive so little even though they risk their lives/health to harvest acai? (Hint: Think about the role of markets and governments) (1-2 sentences
2. We discussed 4 different ways that businesses can increase their surplus product (which translates into profit). Which of these 4 ways is most applicable in explaining why businesses in the U.S. get high surplus product and profits by selling acai harvested in Brazil? Provide an explanation in 1-2 sentences. 2 points
3. According to the video, the global demand for acai could lead to overharvesting. This could also reduce the availability of the nutritious acai berries for the workers and their families. This illustrates the concept of negative externalities. Explain this in 1-2 sentences with respect to acai production. 2 points
4. Formulate one specific question that you could pose to a policy maker/politician about the situation of acai workers in Brazil? 2 points
