Because capitalism is practiced in the United States, misleading advertising is permitted.

Suppose bad weather in Florida unexpectedly results in a much smaller citrus crop than had been projected. The reduction in the supply of Florida citrus fruit would tend to

A) shift the supply curve for Florida citrus fruit down and to the right. B) increase the price of Florida citrus fruit. C) increase the supply of California citrus fruit. D) decrease the price of California citrus fruit.

Suppose the relative price of Ford F150 pickup trucks has risen over the past decade. Yet, even at the higher price, more F150 pickups have been sold. What would an economist conclude?

A) The supply of F150 pickups is downward-sloping. B) The demand for F 150 pickups is upward-sloping. C) Buyers of F150 pickups are acting irrationally. D) All of the above are true. E) None of the above is true.