Suppose Favorable Weather Resulted in a Bumper Crop of Oranges

question 183

Multiple Choice

Suppose favorable weather resulted in a bumper crop of oranges in Florida.In the market for oranges

• A)the supply curve shifted to the right resulting in a decrease in the equilibrium price.
• B)the supply curve shifted to the right resulting in an increase in the equilibrium price.
• C)the demand curve shifted to the left resulting in a decrease in the equilibrium price.
• D)the demand curve shifted to the right resulting in an increase in the equilibrium price.

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Definitions:

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that is not consumed by variable costs and contributes to covering fixed costs.

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Residual Income

The amount of income that exceeds the minimum rate of return on a project or investment.

Required Rate Of Return

The minimum percentage return an investor expects to achieve from an investment to make it worthwhile, considering the risk.