guzmanaguzmana
Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

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.

Sagot :

Ajohnson2199
Most likely the answer will be D.
palebadgworthy

The correct answer is D.

When a market is in equilibrium and suddenly the product (potatoes) becomes scarcer, this means that the amount supplied has decreased and therefore the producer cannot serve the same level of demand as before. Therefore, the price will increase until the quantity demanded equals the new amount supplied, as less consumers will be willing to purchase the product as prices become higher.

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.