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Two events on the market for flax seed

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Suppose a draught in Ruritania, the main producer of flax seeds, caused a major reduction in the quantity of flax seeds produced. At the same time, a major recession causes many people to lose their jobs. As a result of this recession, people cut back on their consumption of flax seeds. Assume that the demand curve for flax seed is downward sloping and that the supply curve for flax seed is upward sloping. Given this information and holding everything else constant, what is the impact of these two events on the market for flax seed?

Reference no: EM132312291

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