What happens when a cyclone destroys the banana plantation?
A) The damaging effect of the cyclone means that farmers are only able to supply fewer bananas at each possible price and supply decreases.
B) There is no effect of cyclone on market prices.
C) The damaging effect of the cyclone means that farmers are able to produce apples instead of bananas with no effect on the supply of bananas.
D) The prices for bananas will increase permanently.
Correct Answer:
Verified
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