Question
About 90% of all avocados consumed in the US are imported from other countries, mostly from Mexico. Most of those avocados are used to make
About 90% of all avocados consumed in the US are imported from other countries, mostly from Mexico. Most of those avocados are used to make guacamole dip for chips. In mid-February, the US temporarily banned all imports of avocados from Mexico because Mexican gangs had threatened the safety of US workers in Mexico. (The ban on avocado imports lasted only about a week, but that was long enough to have a significant impact.) Explain the impact of the ban on avocado imports on the US's equilibrium price and quantity of guacamole. Your explanation should identify what (if anything) shifts and why, and then an explanation in the proper sequence of what happens as a result and why it happens.
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