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How Does Drought Affect The Economy?

California's four-year drought has raised a number of questions about water scarcity and the capacity for agriculture in the Southwest. But many people are also concerned about what role the drought will play economically. 

This idea that there could be a long-term ripple effect of the drought got us thinking about whether it might have a direct effect on consumers.

We spoke to George Frisvold, a professor of Agricultural and Resource Economics at the University of Arizona. We talked about how all of this could affect food prices, given the high cost of water for farmers.

Sarah Ventre was a producer for KJZZ's The Show from 2014 to 2018.