PRC-3 · Chapter 10 · Question 5 of 70
Due to a severe frost, a country's entire orange harvest is severely damaged. How will this event affect the supply curve for oranges?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Shift of the supply curve to the left
Explanation
A negative supply shock (like bad weather destroying crops) reduces the quantity supplied at every price, causing the supply curve to shift to the left.
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