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Assume Madagascar is hit by a hurricane (actually occurred in 2000), and the world's supply of vanilla is reduced by 5/6 or 83%. Label the
Assume Madagascar is hit by a hurricane (actually occurred in 2000), and the world's supply of
vanilla is reduced by 5/6 or 83%. Label the new supply curve S1. What will the new equilibrium price
be in the market? Label that point
b
.
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