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.
You might also like to view...
The benefits a retired worker receives from Social Security are a fixed percentage of the wages he or she earned
Indicate whether the statement is true or false
If the demand curve is more elastic than the supply curve, then:
A. the buyers will bear a greater tax incidence than sellers. B. the sellers will bear a greater tax incidence than buyers. C. tax incidence will be shared equally by buyer and seller. D. None of these is true.
Any supply curve that is a straight line passing through the graph's origin is unit elastic
a. True b. False
Which of the following shows a benefit gained by the United States through the North American Free Trade Agreement?
a. U.S. jobs were lost to lower production costs in Mexico. b. Consumer prices in the United States were lower. c. U.S. manufacturers cut wages to stay competitive. d. The Mexican economy grew to a size similar to Canada’s.