If Good Weather Conditions Result in a Larger Than Normal

question 287

Multiple Choice

If good weather conditions result in a larger than normal crop of peaches,then the

• A) equilibrium price of peaches rises, and the equilibrium quantity of peaches increases.
• B) equilibrium price of peaches falls, and the equilibrium quantity of peaches increases.
• C) demand curve for peaches shifts leftward.
• D) increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases.
• E) equilibrium price of peaches falls, and the equilibrium quantity of peaches decreases.

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Definitions:

Revenue Account

An account in the general ledger that records the income generated by a company from its normal business operations.

Salaries Expense

The total compensation paid to employees, including wages, salaries, bonuses, and deducted taxes, for their work for a company during a specific period.

Operating Expense

Costs associated with the day-to-day operations of a business, such as rent, utilities, and payroll, excluding cost of goods sold.