When Hurricane Andrew Passed Through Louisiana in the Summer of 1992

question 129

Multiple Choice

When Hurricane Andrew passed through Louisiana in the summer of 1992, approximately a quarter of the sugar cane crop was destroyed. Ceteris paribus,

• A) the supply of sugar decreased, and the price of sugar increased.
• B) the supply of sugar decreased, and the price of sugar decreased.
• C) the demand for sugar increased, and the price of sugar increased.
• D) the demand for sugar decreased, and the price of sugar decreased.

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Definitions:

Promoters

Individuals or companies that are involved in the planning and establishment of a company, or those who actively support or recommend something.

Stock Dividend

A distribution of additional shares to shareholders at no extra cost, based on the number of shares they already own.

Corporation's Assets

Resources owned by a corporation that have economic value and can contribute to the company's future income and benefits.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing ownership interest held by shareholders.