Asked by Annabelle Beauchamp on Jun 13, 2024
Verified
(Figure: Shifts in Demand and Supply) Use Figure: Shifts in Demand and Supply.The figure shows how supply and demand might shift in response to specific events.Suppose a fall frost destroys one-third of the nation's orange crop.Which panel BEST describes how this will affect the market for oranges?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
Fall Frost
A meteorological event characterized by the descent of temperatures to below freezing during the autumn season, which can have significant effects on agriculture by ending the growing season.
Orange Crop
The total production of oranges within a given area or from a specific farm or orchard.
- Apprehend the consequences of fluctuations in supply and demand across diverse market environments.
- Gauge the effect of external activities on the market's state of balance, focusing on both price and quantity.
Verified Answer
KM
Kallie McGuireJun 19, 2024
Final Answer :
B
Explanation :
A fall frost destroying one-third of the nation's orange crop would result in a decrease in supply, shifting the supply curve to the left as shown in panel B. This would lead to a higher equilibrium price and a lower equilibrium quantity.
Learning Objectives
- Apprehend the consequences of fluctuations in supply and demand across diverse market environments.
- Gauge the effect of external activities on the market's state of balance, focusing on both price and quantity.
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