Assume floods have destroyed 80 percent of the banana crops. Using graphical demand and supply analysis, explain the impact on the price and quantity of bananas in the market. 2 Marks
NOTE: IN YOUR ANSWER EXPLAIN THE MARKET EQUILIBRIUM ADJUSTMENT PROCESS.
Ceteris paribus, if a tax on petrol results in a large rise in the price of petrol, using graphical demand and supply analysis, explain what would be the impact on price and quan... More