Answer this question ..,,..

Solution:

Due to crop damage in HP, there will be a fall in production and supply of tomatoes. This will shift the initial supply curve from S1S1 to S2S2‚Äč. The inward parallel shift of supply curve will lead to excess demand of tomatoes.This will keep pushing the equilibrium price to rise from OPto OP2.That is higher than the initial equilibrium price OP1.Thus, price of tomatoes will rise in Delhi as supply decreases.




 

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