Recall the Application about the decline in honeybee colonies and its effect on the price of ice cream to answer the following question(s). In the last few years thousands of honeybee colonies have vanished, a result of bee colony collapse disorder (CCD). Roughly one third of the U.S. food supply--including a wide variety of fruits, vegetables, and nuts--depends on pollination from bees. The decline of honeybees threatens $15 billion worth of crops in the United States.
-According to this Application, the decline in honeybee colonies and its subsequent effect on the ingredients used in the production of ice cream has ________ the equilibrium price and ________ the equilibrium quantity of ice cream.

Question

Quizplus · Accepted Answer

The decline in honeybee colonies has led to a decrease in the supply of ingredients, which would lead to an increase in the equilibrium price of ice cream. However, since the decrease in supply also leads to a decrease in the equilibrium quantity demanded, the net effect is an increase in the equilibrium price and a decrease in the equilibrium quantity. Therefore, B is the best choice.

Recall the Application About the Decline in Honeybee Colonies and Its