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Several years ago, the barely crop in Australia was damaged by a heavy infestation of locusts. About 30 percent of the barely crop was destroyed.
Draw a supply and demand graph showing the impact of the locust infestation on the barely market, indicating the following three things:
1. Which curve would shift?
2. What is the direction of the change in equilibrium price?
3. What is the direction of the change in equilibrium quantity?
Be sure to label the axes on your graph (price and quantity) as well as to label the curves (supply and demand)
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