1) Drought will have a major impact on the value of forage. The drought will destroy the large proportion of forage and will therefore reduce the availability of forage to the individuals. The supply of forage will eventually fall and therefore the supply curve of forage will shift leftwards.

2) As drought shifts the supply curve of forage leftwards, this will lead to increase in the equilibrium price of forage and fall in the equilibrium quantity of forage in the market.