Question

Suppose that the wholesaler did not have many lemons to sell to the supermarket because the farmer did not have a good crop. What would happen to the cost of the lemons in the supermarket?
A) decrease
B) increase
C) cost nothing
D) remain the same

Answer 1

Answer:

Option (B).

Explanation:

Because if the farmer can't produce "Much" lemons then the wholesalers can't buy enough to sell to the supermarket which means that the lemons are "scarce".

And when there is scarcity of something, then the price would "increase".

but if there is "too much" of a product like lemon used in the question then the price would "decrease".

imagine you were the wholesalers, won't you increase the price because it's scarce ??.

Hope this helps.

Good luck.