Recall Application 4, "The Bouncing Price of Vanilla Beans," to answer the following questions:
-If after a cyclone strikes a vanilla- producing area, farmers in several new countries plant vanilla, we would expect that over time as the damaged vanilla area is replanted to see a(n)

Question

Quizplus · Accepted Answer

The entry of new vanilla producers would increase the overall supply of vanilla, leading to increased output and a lower price. Thus, the demand and output for vanilla would not be reduced, but rather increased due to new entrants, leading to a decrease in price.

Recall Application 4, "The Bouncing Price of Vanilla Beans," to Answer