Pineapple Speculation and forecasting, Inc. has been hired by a private consortium of pineapple growers in Hawaii to predict what will happen to the price and output of pineapples under the condition below. What are your predictions? Show how the supply and / or demand curves are affected in each case. Show your answers in graphically and give a brief written explanation of why the curves move. Make sure to label your curves and graphs appropriately. Use an upward sloping supply curve.
- Half the pineapple crop is destroyed by fungus.
- The scientists in the agricultural extension service of the University of Hawaii discover a way to cut the amount of water needed to grow pineapples in half.
- The American Medical Association announces that eating pineapple can reduce the risk of heart attack.
- The supply of mangos increases and the price of mangos falls