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faust18 [17]
3 years ago
11

Suppose that a major drought causes a 30 percent reduction in the peanut harvest. If there is no change in demand, this event wo

uld cause a _____ at the original equilibrium price, and the equilibrium price will therefore _____ and the equilibrium quantity will _____.
Social Studies
1 answer:
ivanzaharov [21]3 years ago
5 0

Answer:shortage; rise; fall

Explanation:

Equilibrium price according to economist refer to the point where the price of the demand of the product or services is equal to the price of the supply of the product.

This is when supply meet demand in the demand supply curve.

When there is little product to supply prices of that product usually increases to accommodate the shortage .

This means in this case due to drought they will be less product of peanuts , the lease the product is the more expensive it is going to be to compensate for that shortage .

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