-Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: A bumper wheat crop in Russia results in large imports of wheat to the United States.(See Figure 29.4. )
A)a.
B)b.
C)c.

Question

-Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market,ceteris paribus: A bumper wheat crop in Russia results in large imports of wheat to the United States.(See Figure 29.4. )
A)a. 
B)b. 
C)c.

Quizplus · Accepted Answer

A bumper wheat crop in Russia will increase the supply of wheat globally, causing a decrease in the world price of wheat. This will lead to an increase in US wheat imports. The diagram in choice B shows an increase in supply, which will cause a leftward shift in the demand curve (as shown in the diagram) and a decrease in the equilibrium price of wheat.

-Select the Letter of the Diagram in Figure 28