Asked by Jakob Deckard on May 05, 2024

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If a frost destroys much of the grapefruit crop,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus in the grapefruit market:

A) will increase.
B) will decrease.
C) will not change.
D) may change,but we cannot determine the change without more information.

Positively Sloped

Describes a graph or relationship where, as one variable increases, the other variable also increases, typical of a supply curve in economics.

Negatively Sloped

A graphical representation showing a decrease in one variable as another variable increases, often used in the context of demand curves.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.

  • Examine the effects of changes in supply and demand on overall surplus.
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ZK
Zybrea KnightMay 08, 2024
Final Answer :
B
Explanation :
When a frost destroys much of the grapefruit crop, the supply curve shifts to the left, resulting in a higher equilibrium price and lower equilibrium quantity. As a result, consumer surplus decreases because they have to pay a higher price for the same quantity of grapefruit. Producer surplus also decreases because they have to sell less at a lower price. Therefore, total surplus in the grapefruit market will decrease.