Suppose This Coming Winter France Will Have Unusually Bad Weather

question 147

Multiple Choice

Suppose this coming winter France will have unusually bad weather, and that next year's wine crop will be substantially reduced. Select the best statement.

• A)The French wine supply will increase as price rises.
• B)If the demand for French wine is elastic, wine producers will experience an increase in total revenue.
• C)The initial change in the market will create a surplus of French wine.
• D)In the final equilibrium, price and quantity will be higher.
• E)None of the above

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Investment Bank

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A situation in a loan where the monthly payments are not enough to cover the interest costs, causing the loan balance to increase rather than decrease over time.