The banana is one of Australia's most commonly consumed fruits. Each year, over 95% of households will buy at least one banana and the average person in the population will consume roughly 16kg. While bananas come in over 1,000 varieties, the Cavendish banana accounts for just over half of global production and 9?% of production in Australia. Since the early 2000s, Cavendish bananas have been under threat from a fungus known as Tropical Race 4. This fungus has the potential to make the Cavendish banana go extinct. In response, the Australian government has placed a stringent quarantine policy for the importation of bananas from other countries such as the Philippines, which are the low-cost producers in the region. Bananas are produced in only a few areas of Australia and the crop is frequently disrupted by typhoons. In this problem set we will explore how these typhoons are likely to impact the decision of farmers to plant bananas and the incentives that exist when a country is allowed to export a commodity but not import it