Question

Victoria is the food basket for Australia. In 2017, Victoria witnessed a severe drought that is reported to be the worst in many years. Assume all factors constant meaning that there is no external influence in the market except the drought. (a) Use the demand and supply model figure below to explain the impact of the drought on food supply to Northern Territory, a state that relies on food supplies from Victoria. Drought Demand and supply model

Answer 1

its B on edg2020

Explanation:

B: Crops in the drought-affected areas were destroyed, which led to a decreased food supply and higher food prices.