When floods wiped out the banana crop in Central America, the ...

[awywial]

When floods wiped out the banana crop in Central America, the equili-brium price of bananas ________ and the equilibrium quantity of bananas ________.
 
  A. rose; increased
  B. rose; decreased
  C. fell; increased
  D. fell; decreased

Question 2

Which of the following statements describes the experiences of Corning, Inc since it was established in 1851?
 
  A) long-run growth interrupted by periods of business cycle recession
  B) strong uninterrupted growth in demand
  C) little or no growth in the long run, but very vulnerable to the business cycle
  D) little or no growth in the long run, and unaffected by the business cycle

[jaymee143]

Answer to Question 1

B Figure 4.12(b) on page 102 illustrates this case of a decrease in supply.

Answer to Question 2

A

[awywial]

Excellent

[Alyson.hiatt@yahoo.com]

Gracias!