Recall the Application about the drought in Australia and its impact on the price of rice. In 2008, the
continuation of a 6-year drought in Australia reduced the amount of water available to irrigate Australia’s
rice crop. Farmers responded by reducing the amount of land devoted to rice. The drought was a major
factor in the change of rice prices.
-According to this Application, the severe drought in Australia _______ the supply of Australiaʹs rice crop, shifting its supply curve to the _______.

Question

Quizplus · Accepted Answer

The drought reduced the water available for irrigation, leading to a decrease in the supply of rice, which shifts the supply curve to the left.

Recall the Application About the Drought in Australia and Its