In the long run,a year-long drought that destroys most of the summer's wheat crops causes:
A)permanently higher prices.
B)permanently lower output.
C)permanently lower prices.
D)None of these is true.

Question

Quizplus · Accepted Answer

In the long run, markets tend to adjust to supply shocks like a drought. Farmers may plant more wheat in subsequent years, or other regions may increase production, leading to a return to equilibrium prices and output levels.

In the Long Run,a Year-Long Drought That Destroys Most of the Summer's