Olive Oil Spain is the world's number 1 producer of olive oil, mostly in the southern Andalusia region. But very dry weather there has ravaged olive trees. What affect will the poor weather have on the olive oil market?
Olive trees will not produce as large of a harvest due to the poor weather. This represents supply shift to the left and a movement up the demand curve. Prices rise and quantity falls.
Economics
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Under a fixed exchange rate system, the exchange rate
a. is equal to one. b. fluctuates as the price of gold fluctuates. c. is fixed and interest rates must vary in response to balance of payment movements. d. can periodically change as economic conditions change.
Economics
When the price of gasoline is $2.20 per gallon, 11 million gallons are demanded, and when the price of gasoline goes up to $2.60 per gallon, 10 million gallons are demanded. The gasoline in this range has a(n)
A) elastic demand. B) inelastic demand. C) unit elastic demand. D) perfectly elastic demand.
Economics