question 6 (multiple choice worth 4 points) (01.04 hc) a hurricane destroys the banana crop on the island of…

question 6 (multiple choice worth 4 points) (01.04 hc) a hurricane destroys the banana crop on the island of st. vincent in the caribbean sea. this causes a shift to the left in the supply of bananas to the united states. prices of bananas will ____________ because of a change in ____________. increase, resource costs and availability increase, expectations of the producer decrease, other goods prices decrease, government subsidies

question 6 (multiple choice worth 4 points) (01.04 hc) a hurricane destroys the banana crop on the island of st. vincent in the caribbean sea. this causes a shift to the left in the supply of bananas to the united states. prices of bananas will ____________ because of a change in ____________. increase, resource costs and availability increase, expectations of the producer decrease, other goods prices decrease, government subsidies

Answer

Brief Explanations:

A hurricane destroying the banana crop is a supply - side shock. When the supply of bananas shifts left (decreases) due to a reduction in the availability of the resource (banana crop), and assuming demand remains constant, according to the law of supply and demand, the price will increase. Resource costs and availability are affected by the hurricane.

Answer:

A. Increase, resource costs and availability