Suppose favorable weather resulted in a bumper crop of oranges in Florida. In the market for oranges
A) the supply curve shifted to the right resulting in a decrease in the equilibrium price.
B) the demand curve shifted to the right resulting in an increase in the equilibrium price.
C) the supply curve shifted to the right resulting in an increase in the equilibrium price.
D) the demand curve shifted to the left resulting in a decrease in the equilibrium price.
A
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An example of the moral hazard problem in international investment would be that
A) those seeking funds for the riskiest projects are amongst those most actively seeking the funds. B) the recipients of the funds may use the funds for riskier projects than the approved project. C) government officials may demand higher than the usual amount of bribes. D) those seeking the funds are dishonest.
Would one expect economic growth to be higher or lower in a country that had poorly defined property rights? Why?
What will be an ideal response?
Joe runs a restaurant. He pays his employees $200,000 per year. His ingredients cost him $50,000 per year. Prior to running his restaurant, Joe was a lawyer earning $150,000 per year. What would economists say is Joe's cost of running the restaurant?
A. $150,000 B. $200,000 C. $250,000 D. $400,000
Suppose households unexpectedly decrease consumption. Which of the following will occur as a result of this unexpected reduction in consumption?
A) an increase in stock prices B) a reduction in stock prices C) no change in stock prices D) an ambiguous effect on stock prices