Asked by Jakob Deckard on May 05, 2024
Verified
If a frost destroys much of the grapefruit crop,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus in the grapefruit market:
A) will increase.
B) will decrease.
C) will not change.
D) may change,but we cannot determine the change without more information.
Positively Sloped
Describes a graph or relationship where, as one variable increases, the other variable also increases, typical of a supply curve in economics.
Negatively Sloped
A graphical representation showing a decrease in one variable as another variable increases, often used in the context of demand curves.
Total Surplus
The sum of consumer surplus and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.
- Examine the effects of changes in supply and demand on overall surplus.
Verified Answer
Learning Objectives
- Examine the effects of changes in supply and demand on overall surplus.
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