Suppose Niampora, an island country, is the largest exporter of cotton in its region. A recent flood affected a large part of the country. Which of the following will be an impact of the flood on the supply curve of cotton?
a. The supply curve of cotton will shift rightward.
b. The supply curve of cotton will shift leftward.
c. The supply curve of cotton will become steeper.
d. The supply curve of cotton will become flatter.
b
You might also like to view...
When the Fed buys government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate ________
A) decrease; increases; falls B) increase; increases; falls C) increase; decreases; rises D) decrease; decreases; rises E) increase; increases; rises
Marginal social cost is equal to ________
A) marginal private cost plus the marginal external cost B) the marginal external cost C) the value of the tax that will make the market efficient D) the marginal cost imposed on people other than the producer of the good