Suppose a drought resulted in a major reduction in the California lettuce crop.In the market for lettuce
A)the supply curve shifted to the left resulting in an increase in the equilibrium price.
B)the supply curve shifted to the left resulting in a decrease in the equilibrium price.
C)the demand curve shifted to the right resulting in an increase in the equilibrium price.
D)the demand curve shifted to the left resulting in a decrease in the equilibrium price.

Question

Quizplus · Accepted Answer

A reduction in the California lettuce crop due to a drought would mean a decrease in the supply of lettuce. This would shift the supply curve to the left, meaning that at any given price, there would be a lower quantity supplied. As a result, the market would move to a new equilibrium point with a higher price and a lower quantity of lettuce sold. Therefore, the correct option is A - the supply curve shifted to the left, resulting in an increase in the equilibrium price.

Suppose a Drought Resulted in a Major Reduction in the California