Suppose There Is an Early Freeze in California That Ruins

question 18

Multiple Choice

Suppose there is an early freeze in California that ruins the lemon crop.What happens to consumer surplus in the market for lemons

• A)It increases.
• B)It decreases.
• C)It is not affected by this change in market forces.
• D)It increases very briefly then decreases.

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Definitions:

Flexible Production

A manufacturing strategy that enables a company to adjust and reconfigure its production line quickly to adapt to changes in market demand or product design.

Automation

Automation involves using technology and machinery to perform tasks with minimal human assistance, aimed at increasing efficiency, reducing errors, and saving time and resources.

Compete

To strive against others for the purpose of gaining an advantage, winning a position, or achieving superiority in a field.

Manufacturing

The process of converting raw materials into finished goods through the use of labor, machinery, and processing.