Suppose a drought resulted in a major reduction in the California lettuce crop. In the market for lettuce
A) the supply curve shifted to the left resulting in an increase in the equilibrium price.
B) the supply curve shifted to the left resulting in a decrease in the equilibrium price.
C) the demand curve shifted to the right resulting in an increase in the equilibrium price.
D) the demand curve shifted to the left resulting in a decrease in the equilibrium price.
Answer: A
You might also like to view...
Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold
A) marginal benefit is equal to marginal cost. B) the deadweight loss is equal to economic surplus. C) producer surplus equals consumer surplus. D) the marginal benefit of each of the 20,000 units of iced tea equals $3.
An appreciation in the U.S. dollar benefits which of the following groups of people?
a. All people living in the United States b. U.S. producers who export farm equipment to other countries c. U.S. consumers who buy imported automobiles d. Foreigners who wish to travel to the United States e. U.S. consumers who buy only goods made entirely in the United States