Question 1

The 2019/20 Australia Bushfires affected food production nearly inNew South Wales, Queensland and Victoria that are regarded as the food basket forAustralia.Assume that before, the bushfire, in 2017/18Australiaproduced80,000metrictons. Also,assuimethat after the bushfire devastation in 2019/20 Australia produced 50,000metrictonsof rice.Finally,assume thatduring the same period 2017/18 and 2019/20 thepricerice inAustralia rose from AUD 1.75 per kg to AUD 3.00 per kgrespectively.UsetheDemand andSupplyModel below to answer the questions that follow.