Recall Application 5, "Droughts in Australia and the Price of Rice

question 228

Multiple Choice

Recall Application 5, "Droughts in Australia and the Price of Rice," to answer the following questions:
-The drought in Australia has caused a shift in the:

• A) supply curve for rice to the right.
• B) demand curve for rice to the right.
• C) demand curve for rice to the left.
• D) supply curve for rice to the left.

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Definitions:

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground.

Groundwater

The subsurface water that occupies the pore spaces in soils and rocks, serving as a major source of fresh water for many areas.

Seas Saltier

A condition resulting from the evaporation of ocean water, which increases the concentration of salts, making the seas saltier.