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The quantity supplied of any good or service is the amount that sellers are willing and able to see. The law of supply states that, ceteris paribus, the quantity supplied of a good rises when the price of the good rises (Gans, King and Mankiw, 2005).
Queensland?¦s ??region [that] produces over 90 per cent of Australia?¦s banana crop, has been wiped out for this year?¦ (Koch, Wahlquist, 2006), and as a result of the decrease in the number of banana suppliers, prices immediately began to soar dramatically throughout the nation. Australian Banana Growers Council chief executive Tony Heidrich had already suggested that banana prices were ??certainly going to go up and go up dramatically?¦ (Koch, Wahlquist, 2006)...
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