Watch the following video clip: http://www.au/btn/story/s3290501.htm and answer the following questions.

Watch the following video clip: http://www.abc.net.au/btn/story/s3290501.htm

 and answer the following questions.

7. Using supply and demand curves explain how the cyclone would affect the price and quantity of bananas in the very short run. In drawing your demand and supply curves pay close attention to elasticity.

8. The bananas were called luxuries in the video. Do you think that this is strictly true in economic terms? If bananas were luxuries what would this mean for the supply and demand curves? Hint: note that the price of bananas rose by a large amount as stated in the video.