What Will Happen in the Market for Cotton as a Result

question 233

Multiple Choice

What will happen in the market for cotton as a result of a severe drought?

• A) The demand for cotton will decrease, causing the equilibrium price to fall and equilibrium quantity to fall.
• B) The demand for cotton will increase, causing the equilibrium price to rise and equilibrium quantity to rise.
• C) The supply of cotton will decrease, causing the equilibrium price to fall and equilibrium quantity to fall.
• D) The supply of cotton will decrease, causing the equilibrium price to rise and equilibrium quantity to fall.