Answer to Question #114140 in Microeconomics for Kaviraj Nagarajan

Question

Explain the specific supply conditions that have affected the price of brazil nuts in 2017.

Answer 1

The specific factors that affected the price of Brazilian nuts in 2017 include drought that affected the Amazon. The drought was brought by cyclical El Nino weather patterns which affected the entire region of pacific. Consequently there was disruption of entire supply chain. There was a reduced supply of the nuts while the demand was high. Consequently there was increase in price of the nuts.