Use the Following to Answer Question(s): Demand Shifters and Supply

question 195

Multiple Choice

Use the following to answer question(s) : Demand Shifters and Supply Shifters

-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose a spring frost destroys one-third of the nation's artichoke crop.Which panel best describes how this will affect the market for mayonnaise, which is a complement to artichokes?

• A) Panel (a)
• B) Panel (b)
• C) Panel (c)
• D) Panel (d)

---

Definitions:

Diseconomies of Scale

Phenomena that occur when a company or business grows so large that the costs per unit increase, leading to inefficiency and increased per-unit costs.

Large Business

A corporation or conglomerate with extensive operations, high revenue, and a significant number of employees.

Managing and Coordinating

The processes of directing, overseeing, and orchestrating activities within an organization to achieve predetermined objectives.

Minimum Efficient Scale

Minimum efficient scale is the smallest scale of production at which a firm can achieve long-term average costs that are as low as possible.