If the quantity of a product demanded is greater than the quantity of a product supplied, there is pressure in the market to push the price downward

Suppose a frost destroys the tomato crop in California but farmers see an increase in their revenues. Which of the following best explains this?

A) Tomatoes are necessities. B) The demand for tomatoes is price inelastic. C) The decrease in supply led to huge price increases. D) The cross-price elasticity between tomatoes and most other substitute vegetables is very low.

Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new short-run equilibrium is given by point

A) A. B) B. C) C. D) D.