Nutella and Hazelnuts A key ingredient of Nutella is hazelnuts ...

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Nutella and Hazelnuts A key ingredient of Nutella is hazelnuts which are grown mostly around the Black Sea in Turkey. Nutella uses about a quarter of the world crop. Two things have occurred recently. Nutella is becoming more popular worldwide and a frost destroyed much of this season's crop. How do these occurrences affect the market for hazelnuts?

Question 2

An oral auction
 a. is also called a Vickrey auction
 b. is conducted by bidders submitting a single sealed bid
 c. is where the sole remaining bidder wins and pays his winning bid
  d. all of the above

[Bsand8]

Answer to Question 1

The increased popularity of Nutella shifts the demand curve to the right. The frost has shifted the supply curve to the left. Both serve to cause increases in hazelnut prices, but we cannot tell if the demand shift causes quantity to increase more than the frost causes quantity to decrease.

Answer to Question 2

c

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Gracias!

[billybob123]

Thanks for the timely response, appreciate it