The table below provides data on opium sales and farmgate prices of opium in Afghanistan from 1994 to 2008.

-Refer to the table above.From 2000 to 2001,opium sales fell by 95 percent and opium prices increased by 975 percent.If you are told that demand curve for opium in Afghanistan remained constant from 2000 to 2001,what was the likely change in opium supply?

Question

The table below provides data on opium sales and farmgate prices of opium in Afghanistan from 1994 to 2008.
 
-Refer to the table above.From 2000 to 2001,opium sales fell by 95 percent and opium prices increased by 975 percent.If you are told that demand curve for opium in Afghanistan remained constant from 2000 to 2001,what was the likely change in opium supply?

Quizplus · Accepted Answer

If the demand curve for opium remained constant, the decrease in opium sales by 95% from 2000 to 2001 indicates a decrease in opium supply. Similarly, the increase in opium prices by 975% during this period also indicates a decrease in opium supply. Therefore, the likely change in opium supply is a decrease, which corresponds to choice D.

The Table Below Provides Data on Opium Sales and Farmgate