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:

Acceptance

The act of recognizing and welcoming something or someone's existence, condition, or beliefs without attempting to change them.

Crisis Situation

A critical or unstable time or state of affairs in which a decisive change is impending, often characterized by high levels of uncertainty and stress.

Acute

Describing a condition or phenomenon that is severe in intensity but short in duration.

Heart Attack

A medical condition where blood flow to a part of the heart is blocked, often resulting in damage to the heart muscle.