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, farmers reducing the amount of land devoted to growing rice has _______ the equilibrium price of rice and _______ the equilibrium quantity of rice.

Question

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, farmers reducing the amount of land devoted to growing rice has _______  the equilibrium price of rice and _______ the equilibrium quantity of rice.

Quizplus · Accepted Answer

The Answer of 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, farmers reducing the amount of land devoted to growing rice has _______  the equilibrium price of rice and _______ the equilibrium quantity of rice.

Recall the Application About the Drought in Australia and Its