Answer to Question #153387 in Microeconomics for usama

Question

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

Answer 1

A lower harvest of Brazil nuts in 2007 was due to lack of rains which was caused by El Nino effect. This affected the entire supply of the nuts in Pacific region. The supply for the nuts lowers as the demand increases. This resulted to increase in price for the nuts.