After cyclone Larry banana prices soared as high as $15 a kilogram, against pre-cyclone prices of closer to $2 or $3 a kilo. Explain graphically why banana prices went up after the cyclone
On the basis of your answer to question above, show a theoretical model explaining the equilibrium position (profit/loss situation) for an individual banana producer before the event (you may assume that the banana industry was in the long-run equilibrium before the cyclone)