Which of the following would cause an increase in the demand curve for oranges?
a. a freeze in Florida (a major orange producing state)
b. a new machine that allows orange growers to harvest oranges faster
c. a decrease in the price of apples
d. an announcement by the FDA that oranges lowers cholesterol
d
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If the world price of a good is below the no-trade domestic price, a country
A) will benefit from exporting the good. B) will benefit from importing the good. C) cannot benefit from trade. D) has a comparative advantage in the production of that good. E) will not engage in trade for that good.
The above figure shows the U.S. market for 1 carat diamonds. Area A + area B + area C + area D is the
A) deadweight loss from the import quota. B) importers' profit from the quota. C) decrease in consumer surplus due to the import quota. D) gain in total surplus due to the import quota. E) increase in producer surplus due to the import quota.