the graph shows the demand for and supply of potato chips. draw a curve that shows the effect of a virus…
the graph shows the demand for and supply of potato chips. draw a curve that shows the effect of a virus that destroys potato crops and decreases the quantity of potato chips produced by 30 million bags a week at each price. label the curve. draw a point at the new equilibrium price and quantity. what is the effect of the virus in the market for potato chips? the virus decreases the ________. a. supply of potato chips and decreases the demand for potato chips b. supply of potato chips and decreases the quantity of potato chips supplied c. demand for potato chips because the price of potato chips rises d. supply of potato chips and decreases the quantity of potato chips demanded
Answer
Brief Explanations:
A virus destroying potato crops affects the production of potato - chips. This is a supply - side factor. It reduces the quantity of potato chips that can be produced at each price, shifting the supply curve leftward. As the supply curve shifts leftward, the equilibrium price rises and the equilibrium quantity demanded (along the demand curve) decreases due to the price increase. The demand for potato chips itself is not directly affected by the virus (assuming no change in consumer preferences, income, etc.).
Answer:
D. supply of potato chips and decreases the quantity of potato chips demanded