If an Early Frost Destroys Most of the Apple Crop,the

question 187

Multiple Choice

If an early frost destroys most of the apple crop,the equilibrium price of an apple ________ and the equilibrium quantity ________.

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases
• E) does not change; decreases

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Definitions:

Optimal Consumption

The most efficient allocation of resources and consumption choices based on individual preferences, maximizing utility.

Utility Function

A representation of how a consumer ranks different bundles of goods according to their level of satisfaction or utility.

Income

Financial returns, especially continual, from work or investing activities.

Price of X

The amount of money required to purchase a product or service named X.