Assume that flooding has destroyed the wheat crops in many countries throughout the world, but not in Australia. Using demand and supply graphs, and your knowledge of elasticities, show the effect this would have on:
(a) the equilibrium price of wheat in Australia
(b) the equilibrium quantity of wheat in Australia
What would be the effect on Australian wheat farmers' incomes?

Question

Assume that flooding has destroyed the wheat crops in many countries throughout the world, but not in Australia. Using demand and supply graphs, and your knowledge of elasticities, show the effect this would have on:
(a)	the equilibrium price of wheat in Australia
(b)	the equilibrium quantity of wheat in Australia
What would be the effect on Australian wheat farmers' incomes?

Quizplus · Accepted Answer

The Answer of 	Assume that flooding has destroyed the wheat crops in many countries throughout the world, but not in Australia. Using demand and supply graphs, and your knowledge of elasticities, show the effect this would have on:
(a)	the equilibrium price of wheat in Australia
(b)	the equilibrium quantity of wheat in Australia
What would be the effect on Australian wheat farmers' incomes?

Assume That Flooding Has Destroyed the Wheat Crops in Many