Suppose There Is an Early Freeze in California That Reduces

question 78

Multiple Choice

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

• A)Consumer surplus increases.
• B)Consumer surplus decreases.
• C)Consumer surplus is not affected by this change in market forces.
• D)We would have to know whether the demand for lemons is elastic or inelastic to make this determination.

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Definitions:

Woman

is an adult human female.

Fertility-Rate Calculations

The computation of the average number of children that would be born to a woman over her lifetime in a specific population.

Replacement Rate

In economics, the ratio of a person's retirement income to their pre-retirement income, often focused on social security benefits.

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Groups of individuals of the same species living and interacting within a specific area.