A bad state of nature for the production of tomatoes will shift the supply curve for tomatoes to the ________and________ the equilibrium price of tomatoes.

Question

Quizplus · Accepted Answer

A bad state of nature for the production of tomatoes, such as a drought or pest infestation, would decrease the supply of tomatoes. This decrease in supply is represented by a leftward shift of the supply curve. With a lower supply of tomatoes and assuming demand remains constant, the equilibrium price of tomatoes would increase due to the scarcity.

A Bad State of Nature for the Production of Tomatoes