Recall the Application About the Harmattan and How It Affects

question 101

Multiple Choice

Recall the Application about the harmattan and how it affects the price of cocoa to answer the following question(s) .
-Recall the Application.Using supply and demand analysis,if the harmattan caused a decrease in supply for cocoa,then which of the following must be true?

• A) The equilibrium price of cocoa increased and the equilibrium quantity decreased.
• B) The equilibrium price of cocoa decreased and the equilibrium quantity decreased.
• C) The equilibrium price of cocoa increased and the equilibrium quantity increased.
• D) The equilibrium price of cocoa decreased and the equilibrium quantity increased.

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Definitions:

Managing Demand

The process of strategically moderating and directing consumer demand through various techniques to match available capacity.

Service Firms

Companies that provide intangible products or services to consumers or other businesses.

Capacity Decisions

Capacity decisions are strategic choices made by businesses regarding the amount of production resources available to meet demand, including facilities, equipment, and labor force.

Maximize Profit

The process of making business decisions that increase the difference between total revenue and total costs to the highest possible level.