-The Above Figure Shows the Supply and Demand Curves for Rice

question 103

Multiple Choice

-The above figure shows the supply and demand curves for rice in the U.S.and in Japan.Assume there is no trade between the two countries.If bad weather causes the supply curves in each country to shift leftward by the same amount,then

• A) the price will increase the same amount in both countries.
• B) the price will decrease the same amount in both countries.
• C) the price will increase more in Japan than in the U.S.
• D) the price will decrease more in Japan than in the U.S.

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Definitions:

Apples

A popular fruit known for its variety and nutritional value often used in culinary dishes and beverages.

Bananas

A tropical fruit with soft, creamy flesh, protected by a yellow or green peel, widely consumed worldwide and rich in nutrients.

Utility Function

A mathematical model representing consumer preferences, used to explain how consumers allocate their spending.

Budget Constraint

Represents the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.