Suppose that the market for fresh California navel oranges is in equilibrium and then an unanticipated freeze destroys half of the California navel orange crop. Assuming all other factors affecting supply or demand remain unchanged, how would you expect this event to change the market equilibrium for California navel oranges?
a. The demand for navel oranges would decrease resulting in a lower market equilibrium price and quantity.
b. The supply of navel oranges would decrease resulting in a higher market equilibrium price and a lower market equilibrium quantity.
c. Both supply and demand would increase, resulting in an increase in equilibrium quantity and an indeterminate change in price.
d. Both supply and demand would decrease, resulting in a decrease in both equilibrium quantity and price.
b
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In the above figure, how does the slope of the line between x = 4 and x = 5 compare with the slope between x = 2 and x = 3?
A) The slope is greater between x = 4 and x = 5. B) The slope is greater between x = 2 and x = 3. C) The slope is the same. D) The slope is not comparable.
The potential for redistribution cannot be exaggerated
Indicate whether the statement is true or false
A Prisoners Dilemma illustrates the fact that
a. Rational choices can lead to inefficient outcomes b. Rational choices always leads to good outcomes c. Rational choices always lead to inefficient outcomes d. None of the above
The tradeoffs faced by a society can be illustrated in a graph known as the:
a. production operations curve. b. production cost curve. c. production cost model. d. production cost forecast curve. e. production possibilities curve.