When Hurricane Andrew passed through Louisiana in the summer of 1992, approximately a quarter of the sugar cane crop was destroyed. Ceteris paribus,
A. the supply of sugar decreased, and the price of sugar decreased.
B. the supply of sugar decreased, and the price of sugar increased.
C. the demand for sugar increased, and the price of sugar increased.
D. the demand for sugar decreased, and the price of sugar decreased.
Answer: B
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If low-quality workers are unable to obtain a college degree, then a separating equilibrium can occur if
A) the cost of obtaining a degree is less than the wage premium paid to those who have obtained the degree. B) the cost of obtaining a degree is greater than the wage premium paid to those who have obtained the degree. C) the cost of obtaining a degree is zero. D) the wage premium paid to those who have obtained the degree is positive.
How would a $10 increase in an avoidable per-unit fixed cost effect a price-taking firm's supply curve?
A. MC would increase by $10, and AC would not change. B. AC would increase by $10, and MC would not change. C. MC and AC would both decrease by $10. D. MC and AC would both increase by $10.
A monopolistic competitor maximizes profit by producing 800 units of a good. If the profit-maximizing price is $45, its total revenue is _____
a. $31,000 b. $45,000 c. $36,000 d. $80,045
Both foreign direct investment and foreign portfolio investment by U.S. residents increase U.S. net capital outflow
a. True b. False Indicate whether the statement is true or false