Suppose the supply of apples in a competitive market decreases due to unfavorable weather conditions. As a result, there will be A. a surplus of apples at the existing actual price as the supply curve shifts to the right B. a shortage of apples at the existing actual price as the supply curve shifts to the left C. upward pressure on price that will move it to a new equilibrium that is above the initial equilibrium price and elimination of a shortage as the quantity moves to equilibrium D. downward pressure on price as a shortage is eliminated. E. B and C, only
Suppose the supply of apples in a competitive market decreases due to unfavorable weather conditions. As a result, there will be A. a surplus of apples at the existing actual price as the supply curve shifts to the right B. a shortage of apples at the existing actual price as the supply curve shifts to the left C. upward pressure on price that will move it to a new equilibrium that is above the initial equilibrium price and elimination of a shortage as the quantity moves to equilibrium D. downward pressure on price as a shortage is eliminated. E. B and C, only
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section: Chapter Questions
Problem 1SQ
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Suppose the supply of apples in a competitive market decreases due to unfavorable weather conditions. As a
result, there will be
A. a surplus of apples at the existing actual
B. a shortage of apples at the existing actual price as the supply curve shifts to the left
C. upward pressure on price that will move it to a new equilibrium that is above the initial
elimination of a shortage as the quantity moves to equilibrium
D. downward pressure on price as a shortage is eliminated.
E. B and C, only
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