Suppose the price of tomatoes dramatically increases. Which of the following could cause this change?
A) Hurricanes during the late summer damage the Florida crop, shifting supply left
B) A reduction in tariffs of tomatoes from Central American, shifting supply right
C) A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right
D) Advertising for ketchup increases demand for ketchup, shifting the demand curve to the left

Question

Quizplus · Accepted Answer

Hurricanes damaging the crop would reduce the supply of tomatoes, leading to a leftward shift in the supply curve and an increase in price.

Suppose the Price of Tomatoes Dramatically Increases