Suppose a drought resulted in a major reduction in the California lettuce crop. In the market for lettuce
A) the supply curve shifted to the left 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 demand curve shifted to the left resulting in a decrease in the equilibrium price.
D) the supply curve shifted to the left resulting in an increase in the equilibrium price.
D
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As the price of a product rises, the quantity supplied decreases
Indicate whether the statement is true or false
Refer to Scenario 25-1. M1 in this simple economy equals
A) $1,000. B) $2,000. C) $3,000. D) $8,000.
A reduction in the ratio of the money supply to GDP is
a. financial deepening b. inflation c. financial repression d. real interest rate e. none of the above
Do markets solve all of society's problems?
a. Yes, markets are efficient and work well under nearly all circumstances. b. Yes, markets solve the problems of production and distribution. c. No, they do not solve problems such as unemployment and inflation. d. No, they hardly solve any problems at all. e. Uncertain, economic theory has no answer to this question.