Question

Historically, the production of many perishable foods, such as dairy products, was highly seasonal. Thus, as the supply of those products fluctuated, prices tended to fluctuate tremendously-typically by 25 to 50 percent or more-over the course of the year. One impact of mechanical refrigeration, which was commercialized on a large scale in the last decade of the nineteenth century, was that suppliers could store perishables from one season to the next. Economists have estimated that as a result of refrigerated storage, wholesale prices rose by roughly 10 percent during peak supply periods, while they fell by almost the same amount during the off season Source: Lee A. Craig, Barry Goodwin, and Thomas Grennes, "The Effect of Mechanical Refrigeration on Nutrition in the U.S." Social Science History, Vol. 28, No. 2 (Summer 2004), pp. 327-328. Choose the graph below that corresponds to the change for the peak season OA Oc. OD DOB. Q Si S2 Si Si S2 do a Si Price o 3 X Price Price D2 D D 01 D ement Quantity Quantity Quantity Quantity e Assisi nt Assign 25 31 Click to select your answer DUE AT 11:59 PM Score: 9533 Chapter 14 Homework: Money, banks and the federal ... Completed Assignments (1) o E

Answer 1

Option B will be correct. Supply will remain same as now suppliers can perishable from one season to the next. At the time of peak supply period price will increase because of high demand. Suppliers can supply the same amount as now they have stock from previous period