Recall Application 4, "The Bouncing Price of Vanilla Beans," to Answer

question 234

Multiple Choice

Recall Application 4, "The Bouncing Price of Vanilla Beans," to answer the following questions:
-If after a cyclone strikes a vanilla- producing area, farmers in several new countries plant vanilla, we would expect that over time as the damaged vanilla area is replanted to see a(n)

• A) increased demand and output and a higher price of vanilla.
• B) reduced demand and output and a lower price of vanilla.
• C) reduced supply and output and a higher price of vanilla.
• D) increased supply and output and a lower price of vanilla.

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Definitions:

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services.

Primary Markets

Financial markets where new securities are issued and sold for the first time to investors, such as initial public offerings (IPOs).