Ask Question
BusinessBusiness
11 January, 16:29

Potato crops in Idaho have been damaged by plant disease, causing a scarcity of potatoes in the market. What is the most likely effect of the scarcity? A. The price of potatoes will decrease. B. The demand for potatoes will increase. C. The demand for potatoes will decrease. D. The price of potatoes will increase.

+2
Answers (1)
  1. 11 January, 16:57
    0
    D. The price of potatoes will increase.

    Explanation:

    Should the market experiences scarcity, or a surplus in the supply of a commodity, the laws of demand and supply applies. The price of products and services is determined by the intersection of the demand and supply curves. If the demand is high and supply is low, then the price rises.

    The supply curve slopes upwards. A decrease in supply causes the supply curve to shift to the left. It means the demand and supply curves will meet at a higher price. A low supply of potatoes will mean many buyers competing for a few supplies. These will cause the demand for potatoes to increase and consequently push the prices higher.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Potato crops in Idaho have been damaged by plant disease, causing a scarcity of potatoes in the market. What is the most likely effect of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $67 per unit (100 bottles), including fixed costs of $22 per unit.
Answers (1)
A cap-and-trade program 31 1 Multiple Choice eBook 0 assigns a property right to the atmosphere 0 mandates that every firm individually cut its emissions to below a certain level. 0 assigns a property right to polluting the atmosphere.
Answers (1)
StarZinc Company produced 200 defective units last month at a unit manufacturing cost of $50. The defective units were discovered before leaving the plant.
Answers (1)
One of the unexpected drawbacks of starting your own business is
Answers (1)
Charles is the sole beneficiary of his late uncle's life insurance policy. The face value of the policy is $785,000. Charles has decided to accept annual annuity payments of $95,000. The interest rate on the policy is 5%.
Answers (1)
New Questions in Business
2. Winners and losers from free trade Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $40. Suppose that the world price of meekers is $39.
Answers (1)
An economic system: A. requires a grouping of private markets linked to one another. B. is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem. C.
Answers (1)
Grading at a site refers to A) evaluating the existing subsurface conditions of a site. B) evaluating the groundwater conditions at a site. C) compacting the soil to required density. D) None of these.
Answers (1)
A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:A.
Answers (1)
Which investment has the highest liquidity and can be converted into cash easily? A - bonds B - mutual funds C - stocks D - certificates of deposit
Answers (2)
Home » Business » Potato crops in Idaho have been damaged by plant disease, causing a scarcity of potatoes in the market. What is the most likely effect of the scarcity? A. The price of potatoes will decrease. B. The demand for potatoes will increase. C.
Sign Up Forgot Password?