Crop damaged in himachal pradesh sent tomato prices roaring in delhi. Use diagram and economic theory to analyse the statement

Due to crop damage in HP, there will be excess demand for tomatoes. This will shift the initial supply curve from S1S1 to S2S2​. The inward parallel shift of supply curve will lead to excess demand of tomatoes. Consequently, there will be some buyers who may attempt to buy tomatoes at higher prices. This will keep pushing the equilibrium price to rise. Finally, the equilibrium price will settled to price OP2​ that is higher than the initial equilibrium price OP1.



You can refer to the detailed explanation of this concept by following the below link. Scroll down to the topic 'b. Decrease in Market Supply only'.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/economics/introductory-microeconomics/market-equilibrium/338_1984_5822#slide2_market-equilibrium-under-fixed-number-of-firms

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