In 2007,an unseasonably dry spring led to a sharp decline in the quantity harvested of black morels,a wild mushroom found throughout the upper Midwest.Due to the scant harvest,the price of black morels rose from $9 per pound to nearly $45 per pound.In 2008,slightly above-normal rainfall levels led to a large black morel harvest.Assuming that the demand for black morels did not change from 2007 to 2008,we would expect the 2008 black morel supply to ________ and the equilibrium price of black morels to ________.

Question

Quizplus · Accepted Answer

Given the large harvest in 2008 due to slightly above-normal rainfall levels, the supply of black morels would increase. Assuming demand remains constant, an increase in supply typically leads to a decrease in price, according to basic principles of supply and demand.

In 2007,an Unseasonably Dry Spring Led to a Sharp Decline