Suppose there is an early freeze in California that ruins the lemon crop.What happens to consumer surplus in the market for lemons
A)It increases.
B)It decreases.
C)It is not affected by this change in market forces.
D)It increases very briefly then decreases.

Question

Quizplus · Accepted Answer

The freeze in California causes a decrease in the supply of lemons, which leads to an increase in the equilibrium price of lemons. This means that consumers will have to pay a higher price for lemons, and as a result, consumer surplus will decrease.

Suppose There Is an Early Freeze in California That Ruins