Question

A volcano erupts in Hawaii that destroys or severely damages many of the pineapple orchards located there. What will be the effect on price and quantity of pineapples sold?

price will fall and quantity will fall


price will fall and quantity will rise


price will rise and quantity will fall


price will rise and quantity will also rise

Answer 1

Price will rise and quantity will fall. If someone were to make cars, but only made 15 of them that would instantly make the price jump by thousands. It's all about exclusiveness.

Answer 2

If a volcano erupts in Hawaii that destroys or severely damages many of the pineapple orchards located there, the price will rise and quantity will fall.

This is so because the supply would decrease as a result of the losses, and with a stable demand, its price would increase, since it would be too many people bidding for few goods. This is how the theory of supply and demand works.