If a frost destroys much of the grapefruit crop,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus in the grapefruit market:
A)will increase.
B)will decrease.
C)will not change.
D)may change,but we cannot determine the change without more information.

Question

Quizplus · Accepted Answer

When a frost destroys much of the grapefruit crop, the supply curve shifts to the left, resulting in a higher equilibrium price and lower equilibrium quantity. As a result, consumer surplus decreases because they have to pay a higher price for the same quantity of grapefruit. Producer surplus also decreases because they have to sell less at a lower price. Therefore, total surplus in the grapefruit market will decrease.

If a Frost Destroys Much of the Grapefruit Crop,assuming a Positively