A storm in North Coast of New South Wales destroyed thousands of hectares of pineapple crops. Pineapple farmers whose crops were destroyed by the storm were much worse off, but those whose crops were not destroyed benefited from the floods. Assume that the demand curve for pineapples is inelastic. Have pineapple farmers as a group been hurt or helped by the floods? Explain using supply and demand diagrams

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The first important point to note is that as a general rule 1 Price and revenue move in opposite dir... View the full answer