Use the following to answer question(s): Demand and Supply-Determinants

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events.Suppose a fall frost destroys one-third of the nation's grapefruit crop.Which panel best describes how this will affect the market for Vitamin B-12 tablets, which are a substitute for grapefruit?

Question

Use the following to answer question(s): Demand and Supply-Determinants
 
-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events.Suppose a fall frost destroys one-third of the nation's grapefruit crop.Which panel best describes how this will affect the market for Vitamin B-12 tablets, which are a substitute for grapefruit?

Quizplus · Accepted Answer

A fall frost that destroys one-third of the nation's grapefruit crop will reduce the supply of grapefruit, which will increase the demand for Vitamin B-12 tablets, which are a substitute for grapefruit. This will shift the demand curve for Vitamin B-12 tablets to the right, as shown in Panel (a).

Use the Following to Answer Question(s): Demand and Supply-Determinants