In 2004, hurricanes destroyed a large portion of Florida's grapefruit crop. How did this affect the market price and market quantity of grapefruit?
What will be an ideal response?
The supply curve for grapefruit shifted to the left resulting in a higher equilibrium price and lower equilibrium quantity.
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An opportunity cost is:
a. the value obtained when making a choice. b. the price paid for the choice that is made. c. what must be given up to obtain something that is desired. d. what must be given up to obtain something that is not desired.
Economic systems differ according to what two main characteristics?
A. Ownership of resources and methods of coordinating economic activity. B. The system of government and the quantity of natural resources available. C. Quantity of output produced and who receives the output. D. Who produces the output and what technology is used to produce it.
External costs are modeled by creating a new social cost curve that is
A. higher than the original supply curve. B. lower than the original demand curve. C. higher than the original demand curve. D. lower than the original supply curve.
A comparative advantage in the production of coal is held by
A. Australia.
B. the United States.
C. both countries.
D. neither country.