Price data shows that Banana prices were steady between years 2009-2011, and then

increased from about $2-$3 per kilo to $13-$16 dollars per kilo after February 2011.

1- What movements in in supply and demand would be consistent with the changes in

Banana prices? Discuss the factors and mechanisms that have causes these patterns of

price change. Use Demand and Supply diagrams where needed.

2- Suppose that in Queensland between 2006- 2009 the prices of Bananas increased, and

then between 2011- 2013 quantity of Banana sold decreased. Could it be possible that

the demand for the banana decreased between years 2006 and 2009 and again between

2011 and 2013? Explain your answer.