What might explain a rise in the price of avocados accompanied by decreased quantity sold?

A rise in the price of avocados, accompanied by a decrease in the quantity sold, can be explained by the presence of plant disease affecting avocado trees. When a disease impacts the health and yield of avocado trees, it can significantly reduce the supply of avocados available in the market.

This reduction in supply leads to higher prices because there are fewer avocados to meet consumer demand. Even if consumers still want to buy avocados, the limited supply means that sellers can charge more. As a result, while the price of avocados rises due to scarcity, the quantity sold decreases because some consumers may be unable or unwilling to pay the higher price. Thus, the situation illustrates the basic economic principle of supply and demand, where a decrease in supply while demand remains constant causes a price increase alongside a decrease in the quantity transacted.