Welcome to the 87th edition of our Newsletter EdGenie's 📜 Sunday Scroll...

Every Sunday I send out actionable tips, tricks and real-world application insights from my 15 year experience coaching students to achieve As and A*s in their Economics A Levels via EdGenie.

Hey Genies, 👋

Let’s get straight to it:

If you have to memorise, it means you don't truly understand. ❌

If you truly understand, you don’t need to memorise. ✅

Think about it.

Do you try and memorise long chains of analysis, diagrams, definitions, and evaluations?

If you do, it's because you’re not deeply understanding the content.

You're trying to force it into memory, hoping it sticks. 📚

But here's the truth:

Real understanding means you can naturally explain concepts clearly.

You can effortlessly apply your knowledge to any question the exam throws at you. 🎯

Here’s what you need to do instead:

✅ Understand through Real-World Application:​
Don’t just read notes or watch endless theory videos.
Link every concept to real-life examples—think subsidies for electric cars, rising interest rates in the UK, or the impact of sugar taxes.
✅ Regular Question Practice:​
Put away the flashcards.
Start practising past papers, essays, data responses, and MCQs right after you learn a topic.
✅ Get Immediate, Personalised Feedback:​
You need someone who can explain exactly why your answers are wrong, right, or how they can be better.

And guess what?

At EdGenie, this is exactly what we specialise in - real understanding, active practice, and tailored feedback.

We teach you how to actually understand Economics so you don't have to memorise anything.

Stop memorising, start understanding, and watch your grades transform. 🚀

You've got this.

  Emre 🧞‍♂️

📈 Demand Explosion from Viral TikTok: A TikTok video showing Dubai’s pistachio cream chocolate went viral in December 2023 with over 120 million views, massively boosting global demand for pistachio products.

 🍫 Dubai Chocolate Craze: Boutique chocolatier FIX in Dubai created the original chocolate with pistachio cream and shredded pastry — it became a global sensation beyond the UAE, despite limited production windows.

 💰 Pistachio Prices Skyrocket: Pistachio kernel prices rose sharply from $7.65 to $10.30 per pound within a year, as supply couldn't keep pace with the sudden surge in demand.

🇺🇸 Supply Constraints in the US: The United States, the top pistachio exporter, suffered a poor harvest and unusually high-quality nuts (meaning fewer cheap kernels for processing), tightening supply even before the craze.

🇮🇷 Iran Ramps Up Exports: Iran, the second-largest producer, boosted pistachio exports to the UAE by 40% in six months to satisfy the booming demand from chocolate manufacturers.

 🏭 Global Shortage Hits Chocolate Makers: Major brands like Lindt and Läderach launched pistachio cream products but struggled with shortages not only of pistachios but also of kataifi, the special shredded pastry used in the bars.

🌳 Farmers Shift to Pistachio Farming: Some Californian farmers have started switching from almonds to pistachios, but the trees won’t bear fruit until future harvest seasons, meaning relief will be delayed.

 🧁 Brand Protection Concerns: FIX expressed concern that other brands are copying their concept and misleading customers, noting that they only sell the original bar for two hours a day within the UAE.

 🌍 Wider Impact on Commodity Markets: The pistachio shortage is unfolding alongside a global cocoa shortage caused by extreme weather, demonstrating broader vulnerabilities in global food supply chains.

Q. Explain how the viral success of Dubai chocolate bars could lead to a rise in the global price of pistachios.
A.The viral success of Dubai chocolate bars caused a significant rightward shift in the demand curve for pistachios, as manufacturers rushed to meet consumer appetite for pistachio-filled products. At the same time, the supply of pistachios was relatively inelastic in the short run because of the time needed to grow new trees. This mismatch between rising demand and limited supply led to excess demand, pushing up pistachio prices globally from $7.65 to $10.30 per pound. A supply and demand diagram would show the new higher equilibrium point. Knock-off brands and seasonal products like Easter eggs further reinforced the demand surge.

Q. Using the concept of price elasticity of supply (PES), explain why pistachio prices have risen sharply following a sudden increase in demand.
A. Pistachios exhibit highly inelastic supply in the short term because pistachio trees take years to mature. When the viral Dubai chocolate bars drove a sudden spike in demand, producers could not quickly respond by increasing output. As a result, prices rose sharply to ration existing stocks. Inelastic supply means even a small demand increase leads to a large price rise. Over time, elasticity could improve as farmers shift production towards pistachios, but short-term responses are severely limited due to biological growth constraints.

Q. Discuss the likely impact of a sustained pistachio shortage on firms operating in the global luxury chocolate market.
A. A sustained pistachio shortage would push up input costs, squeezing profit margins for luxury chocolatiers such as Lindt and Läderach. Firms might attempt to pass on higher costs to consumers through premium pricing, but this could reduce quantity demanded if substitutes exist. Alternatively, firms may downsize bar portions or innovate with other ingredients. Smaller brands, lacking strong supply chains, could be driven out, increasing market concentration. Firms with flexible production and strong brand loyalty are more likely to maintain profitability during sustained shortages.

Q. Evaluate whether the pistachio market is likely to achieve an efficient allocation of resources in response to the global shortage.
A. In theory, higher prices serve as a market signal encouraging producers to allocate more resources toward pistachio production, thus promoting efficient resource use. However, biological delays in pistachio tree growth limit short-term responsiveness, leading to prolonged inefficiency. Over time, as farmers switch from lower-value crops like almonds to pistachios, supply will gradually adjust, and market efficiency will improve. Yet, if consumer demand cools before new supply arrives, overproduction risks future inefficiencies. Overall, long-run efficiency depends on sustained demand and rational producer expectations.

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