Suppose a Frost Destroys the Tomato Crop in California but Farmers

question 75

Multiple Choice

Suppose a frost destroys the tomato crop in California but farmers see an increase in their revenues.Which of the following best explains this?

• A)The decrease in supply led to huge price increases.
• B)Tomatoes are necessities.
• C)The demand for tomatoes is price inelastic.
• D)The cross-price elasticity between tomatoes and most other substitute vegetables is very low.

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Definitions:

Sales Receipts

Documents that provide proof of a transaction between a seller and a buyer, indicating the exchange of goods or services for payment.

Bank Statements

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Chart of Accounts

A listing of all the accounts in a business's general ledger, which includes assets, liabilities, revenue, expenses, and equity.

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