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Estimated demand for sugarcane is QD = 45, 000 3, 000 P. Heavy rains increase the cost of harvesting sugarcane and diminish the sugar content
Estimated demand for sugarcane is QD = 45, 000 3, 000 P. Heavy rains increase the cost of harvesting sugarcane and diminish the sugar content of the harvested cane. As a result, the supply (adjusted for sugar content) shifts from the position indicated by the solid line (QS = 13, 500 4, 500 P) to the position indicated by the dashed line (QS = 4, 500 1, 500 P). Prices are in dollars per ton and quantities are in tons per month
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