Your firm produces ready- made guacamole and avocados are the primary ingredient. During a news report, weather forecasters just announced that there will be a freeze in the region in which your firm buys avocados. This freeze will likely damage many of the avocados that are almost ready for harvest.
-Refer to the figure above. As a result of what occurs in the avocado market, your firm should expect costs to________ , which will cause your firm to ________supply of ready- made guacamole.

Question

Quizplus · Accepted Answer

The freeze will damage many of the avocados that are almost ready for harvest, leading to a decrease in the supply of avocados. This will increase the cost of avocados, which is the primary ingredient in the ready-made guacamole produced by the firm. Therefore, the firm should expect costs to increase, which will cause the firm to decrease the supply of ready-made guacamole.

Your Firm Produces Ready- Made Guacamole and Avocados Are the Primary