Olive Oil Spain is the world's number 1 producer of olive oil, ...

[hubes95]

Olive Oil Spain is the world's number 1 producer of olive oil, mostly in the southern Andalusia region. But very dry weather there has ravaged olive trees. What affect will the poor weather have on the olive oil market?

Question 2

An oral auction
 a. is also called a Vickrey auction
 b. is where bidders submit increasing bids until all but one remains
 c. is where the highest bidder wins and pays the amount of the next highest bid
  d. all of the above

[lorealeza77]

Answer to Question 1

Olive trees will not produce as large of a harvest due to the poor weather. This represents supply shift to the left and a movement up the demand curve. Prices rise and quantity falls.

Answer to Question 2

b