Suppose a Drought Resulted in a Major Reduction in the California

question 40

Multiple Choice

Suppose a drought resulted in a major reduction in the California lettuce crop.In the market for lettuce

• A)the supply curve shifted to the left resulting in an increase in the equilibrium price.
• B)the supply curve shifted to the left resulting in a decrease in the equilibrium price.
• C)the demand curve shifted to the right resulting in an increase in the equilibrium price.
• D)the demand curve shifted to the left resulting in a decrease in the equilibrium price.

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Definitions:

International Debt

The total amount of debt owed by a country to foreign creditors, which can include governments, private investors, and international banks.

Consumer Spending

The total amount of money spent by households in an economy on goods and services.

Appreciation

An increase in the value of a currency in terms of other currencies.

Euro

The official currency used by 19 of the 27 European Union countries, also known as the eurozone.