Question

Which of the following describes what will happen in the market for tomatoes if a salmonella outbreak is attributed to tainted tomatoes?

a. Supply will increase and price will increase.
b. Supply will decrease and price will decrease.
c. Demand will decrease and price will increase.
d. Demand will decrease and price will decrease.
e. Supply and demand will both decrease.

Answer 1

supply will decrease, demand will decrease

Step-by-step explanation:

from a chart standpoint, there will be less availible good tomatoes, and since they seem to be tainted, demand will decrease because of the chances of getting one that hasnt been processed. the supply being sold will decrease, and the ammount demanded will decrease as well. moving both S(/) and D(\) to the left