Question
The following quote is from the Sydney Morning Herald, regarding multiple cases of hepatitis A found in frozen berries imported into Australia in 2016: 'Agriculture
The following quote is from the Sydney Morning Herald, regarding multiple cases of hepatitis A found in frozen berries imported into Australia in 2016: 'Agriculture Minister, Barnaby Joyce ... had a slogan ready. "Buy Australian and save yourself a pain in the guts", he said. Joyce was furious at the lack of hep A and E.coli testing on imported frozen berries.'
For your own working, illustrate the above in a supply and demand diagram for the Australian market for imported berries. You do not need to submit this diagram, but you can use the diagram to help answer the related question.
- Question:Using two to three sentences, explain which curve or curves you would shift to illustrate the above situation, and state the direction of the shift. State the expected effects on equilibrium price and quantity traded.
Draw a new diagram to show the effects of the same shock on the market for domestically produced berries in Australia. You do not need to submit this diagram, but you can use the diagram to help answer the question.
- Question: In two to three sentences, state whether the demand curve and/or the supply curve for this market should be shifted, the direction of the shift, and clearly explain why.
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