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Rus_ich [418]
3 years ago
6

Potato crops in Idaho have been damaged by plant disease, causing a scarcity of potatoes in the market. What is the most likely

effect of the scarcity?
A. The price of potatoes will decrease.


B. The demand for potatoes will increase.


C. The demand for potatoes will decrease.


D. The price of potatoes will increase.
History
2 answers:
Charra [1.4K]3 years ago
5 0
Most likely the answer will be D.
mr_godi [17]3 years ago
3 0

The correct answer is D.

When a market is in equilibrium and suddenly the product (potatoes) becomes scarcer, this means that the amount supplied has decreased and therefore the producer cannot serve the same level of demand as before. Therefore, <u>the price will increase until the quantity demanded equals the new amount supplied</u>, as less consumers will be willing to purchase the product as prices become higher.

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