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:

Capitalistic Firm

A business entity operating in a capitalist economy, where the means of production are privately owned and operated for profit.

Marxian Inputs

Factors of production (labor, capital, etc.) as analyzed in Marxist economic theory, focusing on their exploitation and role in generating surplus value.

Production Function

A quantitative model that demonstrates how the inputs in the production process impact the goods or services output.

Supply Function

A mathematical expression that shows the relationship between the quantity of a good or service that producers are willing to sell and the price of the good or service.