Suppose that a frost in Florida reduces the size of the orange crop, which causes the supply curve to shift to the left (from Supply, to Supply2). Supply2 As a result, consumer surplus Supply, O A. decreases by areas B and C and increases by area G. O B. decreases by areas B, C, D, and G O C. decreases by areas B and C. B O D. decreases by areas B, C, and D. G O E. none of the above. Producer surplus O A. increases by areas B, C, and D. Demand O B. increases by areas B and C. Quantity (oranges) OC. decreases by area G. O D. increases by area B and decreases by areas F and G. OE. none of the above.
Suppose that a frost in Florida reduces the size of the orange crop, which causes the supply curve to shift to the left (from Supply, to Supply2). Supply2 As a result, consumer surplus Supply, O A. decreases by areas B and C and increases by area G. O B. decreases by areas B, C, D, and G O C. decreases by areas B and C. B O D. decreases by areas B, C, and D. G O E. none of the above. Producer surplus O A. increases by areas B, C, and D. Demand O B. increases by areas B and C. Quantity (oranges) OC. decreases by area G. O D. increases by area B and decreases by areas F and G. OE. none of the above.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that a frost in Florida reduces the size of the orange crop, which causes the supply curve to shift to the left (from
Supply, to Supply2).
Supply2
As a result, consumer surplus
Supply,
O A. decreases by areas B and C and increases by area G
O B. decreases by areas B, C, D, and G.
O C. decreases by areas B and C.
O D. decreases by areas B, C, and D
O E. none of the above.
E
Producer surplus
F
O A. increases by areas B, C, and D.
Demand
O B. increases by areas B and C.
Quantity (oranges)
O C. decreases by area G.
O D. increases by area B and decreases by areas F and G.
O E. none of the above.
Pfce (Golars per orango)
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