If a Frost Suddenly Destroyed a Big Portion of the Orange

question 20

Multiple Choice

If a frost suddenly destroyed a big portion of the orange crop,a good with highly elastic demand,what would be the impact on quantity demanded and price?

• A) Quantity demanded would decrease a lot, and price would decrease.
• B) Quantity demanded would increase a little, and price would remain stable or rise slightly.
• C) Quantity demanded would decrease a little, and price would increase sharply.
• D) Quantity demanded would decrease a lot, and price would remain stable or rise slightly.

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Definitions:

Circular-Flow Diagram

A visual model showing the interactions between households and firms in an economy, illustrating the flows of goods and services and factors of production in markets.

Factors Of Production

The resources including labor, land, capital, and entrepreneurship, that are used in the production of goods and services.

Laboratory Experiments

Controlled experiments typically conducted in a lab setting to study behavior or test hypotheses in economics and other sciences.

Markets For Factors

Markets where factors of production such as labor, capital, and land are bought and sold.