A Good Weather in Spain Results in Good Crop of Oranges

question 176

Multiple Choice

A good weather in Spain results in good crop of oranges causing the prices of both oranges and orange juice to fall. As a result, the consumer surplus in the market for oranges

• A)decreases, and the consumer surplus in the market for red wine decreases.
• B)decreases, and the consumer surplus in the market for red wine increases.
• C)increases, and the consumer surplus in the market for red wine decreases.
• D)increases, and the consumer surplus in the market for orange juice increases.

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Definitions:

Instrument

A legal document formally evidencing an obligation or right, such as checks, promissory notes, or securities.

Holder

A person who is in possession of a negotiable instrument that is issued or indorsed to that person’s order or to bearer.

Negotiable Instrument

A written document that is signed by the maker or drawer and that contains an unconditional promise or order to pay a certain sum of money on delivery or at a definite time to the bearer or to order.

Holder in Due Course

A legal term describing a party who has acquired a negotiable instrument in good faith and for value, thereby having certain protections against defenses and claims.