An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is only half of what was produced last year. You accurately predict that this
A. will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the demand for cotton will fall.
B. will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
C. will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
D. will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the demand for cotton will fall.
Answer: C
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Refer to Table 8-18. What is real GDP in 2016, using 2016 as the base year?
A) $28,885 B) $11,790 C) $11,200 D) $10,275
In the past, presidential candidates have argued that free trade with Mexico would result in massive job losses in the United States because Mexican wages were so low. Which of the following is the best explanation of why few economists agree with this position?
A. Economists believed that the U.S. unemployment rate would rise. B. Although economists agreed that in some areas the United States would lose jobs, they expected that the United States would gain jobs in other areas. C. Although economists predicted that unemployment would rise, the increased profits of corporations would raise stock prices enough to compensate for the lost jobs. D. Economists did not believe that any jobs would be lost in the United States.
Exhibit 10-5 Aggregate demand curves
In Exhibit 10-5, which one of the following could cause the U.S. aggregate demand curve to move from AD3 to AD2?
A. greater resource availability B. nonfluctuating resource availability C. a recession in Japan D. an increase in government grants for AIDS awareness programs
Which of the following is NOT a characteristic of a laissez-faire system?
A. Enforcement of contracts B. Protecting private property rights C. Minimal government intervention D. Public ownership of all capital