Question

19. Suppose that the weekly demand for crates of bananas is Qd= 20,000-00P. The current equilibrium quantity is 8000 crates of bananas per week. Now suppose that flooding destroys some of the banana crop. Consumer spending on bananas will a) rise for a small crop failure and fall for a large crop failure b) fallfor a small crop failure and rise for a large crop failure レー1,002 tep ardless of the size of the crop failure d) fall regardless of the size of the crop failure P14om

Answer 1