If a frost destroys much of the apple crop,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus in the apple market:
A) will increase.
B) will decrease.
C) will not change.
D) may change,but we cannot determine the change without more information.

Question

Quizplus · Accepted Answer

If a frost destroys much of the apple crop, the supply curve for apples will shift to the left, resulting in a shortage of apples in the market. This will cause the price of apples to increase, causing a decrease in consumer surplus as consumers will have to pay a higher price for the same quantity of apples. Producer surplus, on the other hand, will increase due to the higher price. Therefore, total surplus in the apple market will decrease.

If a Frost Destroys Much of the Apple Crop,assuming a Positively