Ans: Supply shifts left, P rises and Q falls.
Explanation:
Due to drought, supply will decrease, therefore, supply curve will shift to left. The new equilibrium will establish at higher price and lower quantity.
Thus, option [A] is correct answer.
In the ethanol market, what happens when: A severe drought destroys a large portion of the...
What happens to the market for corn if there is a drought that affects corn growers? Select one: O a. A rightward shift in supply, a decrease in price, and an increase in quantity O b. A leftward shift in supply, an increase in price, and a decrease in quantity O c. A decrease in supply, an increase in demand, and an increase in price O d. A decrease in supply, a decrease in demand, and a decrease in price
What happens to the market for corn if there is a drought that affects corn growers? Select one: O a. A rightward shift in supply, a decrease in price, and an increase in quantity O b. A leftward shift in supply, an increase in price, and a decrease in quantity O c. A decrease in supply, an increase in demand, and an increase in price O d. A decrease in supply, a decrease in demand, and a decrease in price
What happens in the market for coffee if the price of sugar rises? Select one: O a. supply shifts to the left and price increases O b. supply shifts to the right and price decreases O c. demand shifts to the left and price decreases O d, demand shifts to the right and price increases
A hurricane destroys the orange crop in Florida. What happens to the market for oranges? Select one: 0 a. supply increases and price decreases O b. supply decreases and price decreases O c. supply increases and price increases O d. supply decreases and price increases
20. In the bond market, the bond demanders are the and the bond suppliers are the A) lenders: borrowers B) lenders, advancers C) borrowers; lenders D) borrowers, advancers 21. The demand curve for bonds has the usual downward slope, indicating that at prices of the bond, everything else equal, the is higher. A) higher; demand B) higher, quantity demanded C) lower; demand D) lower; quantity demanded 22. Everything else held constant, if interest rates are expected to fall in the...
12.)In the market for corn, what happens to demand when the price of corn increases? What happens to supply? What happens to equilibriuim price? What happens to equilibrium quantity? A.) A new technology to produce corn is invented. This technology dominates the current technology. It is costless for firms to switch technologies. What happens to demand for corn? What happens to supply? What happens to equilibriuim price? What happens to equilibrium quantity? B.) What happens to demand in the present...
If the market power of firms increases, what happens in the AD/AS model? Aggregate demand shifts to the right. Aggregate supply shifts to the right. Aggregate supply shifts to the left. Aggregate demand shifts to the left.
1. If demand deceases and supply remains constant, what happens to the market equilibrium? A. Quantity and price both rise. B. neither price or quantity will change C. Quantity and price both fall. D. Quantity rises and price falls. 2. A positive statement is A. an opinion B. a value judgement. C. can be shown to be correct or incorrect. D. based upon what can be demonstrated to be true. 3. If a technology change reduces a company's production costs,...
1. Drought in North and West Texas has had a severe impact on the cotton crop. Estimates are that the harvest of Texas cotton in November could be down by over 40%. a) Draw a supply and demand diagram as part of an explanation of why this might change the price of cotton today (Sept.20). (3 points) b) Describe how the results in (a) would impact the market for Men's dress shirts and the market for silk. For each market,...
A stock market boom would shift the aggregate demand curve to the Right.To offset this change, the Fed could increase the money supply. right. To offset this change, the Fed could decrease the money supply. left. To offset this change, the Fed could increase the money supply. left. To offset this change, the Fed could decrease the money supply. Other things the same, if the Fed increases the money supply, the interest rate rises so aggregate demand shifts right. rises...