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Suppose a severe drought hits the sugarcane crop

by | May 26, 2022 | Recent Orders

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Question 1: Suppose a severe drought hits the sugarcane crop. Using a supply and demand model explain how this will affect the equilibrium price and quantity in the market for sugar and the market for honeyQUESTION TWO:(a). Complete the following table of costs for the Pizza Company. (3 Answer preview:Sugarcane production is normally done in area with high rainfall level. But, severe draught that hit the sugarcane crop farming has an impact of decreasing its yields and increasing its production expenses. The ancillary expenses incurred during draughts periods includes expenses related to irrigation such water bills, irrigation system equipment’s and finally personnel manning the irrigation system. On the other hand, bees rearing can still be undertaken during periods of severe draughts. Thus, draught has little or no impact on bee farming. Hence, the supply of honey will not be interrupted as a result of severe draught striking that area where it is undertaken under.Honey supply will thus not be affected by the severe draught hence its supply will remain constant for the foreseeable future. Whereas the supply of sugar will be affected due to the climatic condition experienced. Its supply will decrease due to decrease in its yieldWord: 2,100

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