Question

In agriculture, a "bumper crop" refers to a particularly productive harvest. If there is a bumper crop for wheat at the same time that more people become allergic to wheat and all else is held constant, what will happen to the equilibrium price and quantity for wheat?
a. The equilibrium price will go up and equilibrium quantity will go up.
b. The equilibrium price will be indeterminate and equilibrium quantity will go up.
c. The equilibrium price will go down and equilibrium quantity will be indeterminate.
d. The equilibrium price will go up and equilibrium quantity will be indeterminate.
e. The equilibrium price will be indeterminate and equilibrium quantity will go down.

Answer 1

Answer:

c. The equilibrium price will go down and equilibrium quantity will be indeterminate.

Explanation:

A bumper crop can also be a source of problems, such as when there is insufficient storage space (barns, grain bins, etc.) for an overlarge crop.