What can you say about the statement "when extreme heat damages flower yields of growers in California, the price of flowers in Chicago decreases"? Assume flowers can be shipped across the US for free, quickly, and arrive in per

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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What can you say about the statement "when extreme heat damages flower yields of growers in California, the price of flowers in Chicago decreases"? Assume flowers can be shipped across the US for free, quickly, and arrive in perfect condition.

 

Question 3 options:

 

It is true, because the demand for flowers in the US shifts  left leading to lower prices

 

It is false, there is no relation between the Chicago and California markets under the conditions described in the question

 

It is true, because the demand for flowers in the US shifts right leading to lower prices

 

It is false, because the supply of flowers in the US shifts left leading to higher prices

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