If Good Weather Conditions Result in a Larger Than Normal

question 127

Multiple Choice

If good weather conditions result in a larger than normal crop of peaches, then the

• A) increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases.
• B) demand curve for peaches shifts leftward.
• C) equilibrium price of peaches falls, and the equilibrium quantity of peaches decreases.
• D) equilibrium price of peaches rises, and the equilibrium quantity of peaches increases.
• E) equilibrium price of peaches falls, and the equilibrium quantity of peaches increases.

---

Definitions:

Location-Specific Human Capital

Skills and knowledge acquired by workers that are particularly valuable in a specific geographic or organizational context.

Competitive Inertia

A state where a company is reluctant or unable to adapt to changes in the market, often resulting in lost competitiveness.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding contradictory beliefs, values, or attitudes.

Company-Specific Human Capital

The unique skills, knowledge, and experience possessed by an individual that are particularly valuable to their employer and not easily transferable to other organizations.