A severe storm destroyed the banana plantations in northern Queensland. Shortly thereafter the price of bananas rose significantly. These events suggest that a/an:

Question

Quizplus · Accepted Answer

The severe storm that destroyed the banana plantations in northern Queensland caused a decrease in the supply of bananas. Following the basic economic principle of supply and demand, with a decrease in supply, the price of bananas rose significantly. Therefore, option A is the correct answer.

A Severe Storm Destroyed the Banana Plantations in Northern Queensland