With the recent war between Russia and Ukraine, the production and thus exports of wheat have declined (which increased the price of such exports), because Ukraine is the major producer and exporter of the same. As a result, what can we expect in the market for rice, used by many as a staple instead of wheat? a) The equilibrium price will increase, the equilibrium quantity will decrease b) The equilibrium price will increase, the equilibrium quantity will increase c) The equilibrium price will decrease, the equilibrium quantity will increase d) The equilibrium price will decrease, the equilibrium quantity will decrease
With the recent war between Russia and Ukraine, the production and thus exports of wheat have declined (which increased the price of such exports), because Ukraine is the major producer and exporter of the same. As a result, what can we expect in the market for rice, used by many as a staple instead of wheat? a) The equilibrium price will increase, the equilibrium quantity will decrease b) The equilibrium price will increase, the equilibrium quantity will increase c) The equilibrium price will decrease, the equilibrium quantity will increase d) The equilibrium price will decrease, the equilibrium quantity will decrease
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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With the recent war between Russia and Ukraine, the production and thus exports of wheat have declined (which increased the price of such exports), because Ukraine is the major producer and exporter of the same. As a result, what can we expect in the market for rice, used by many as a staple instead of wheat?
a) The
b) The equilibrium price will increase, the equilibrium quantity will increase
c) The equilibrium price will decrease, the equilibrium quantity will increase
d) The equilibrium price will decrease, the equilibrium quantity will decrease
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