In 2004, hurricanes destroyed a large portion of Florida's grapefruit crop. How did this affect the market price and market quantity of grapefruit?
What will be an ideal response?
The supply curve for grapefruit shifted to the left resulting in a higher equilibrium price and lower equilibrium quantity.
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Which of the following is an example of a topic studied by microeconomists?
A) Price determination by a firm B) Interest rate determination C) Measures to combat inflation D) National income calculations
Which of the following equations correctly represents nominal exchange rate?
A) Nominal exchange rate = units of foreign currency/1 unit of domestic currency B) Nominal exchange rate = 1 unit of domestic currency/100 units of foreign currency C) Nominal exchange rate = 100 units of domestic currency/1 unit of foreign currency D) Nominal exchange rate = units of foreign currency/100 unit of domestic currency