Northern Mexico faces the worst drought in its history. Its effects will exceed those caused by El Niño in 1998. The Mexican government is expected to declare the 12 northern states a disaster zone in the coming days. Juan Figueroa Fuentes, president of Agrobarzón, warned that if it does not rain in the next few days, more than 250,000 hectares sown with wheat, corn and sorghum will be lost. In addition, 170,000 hectares will stop being planted with other crops since it will be too late when it rains. In the same way, 50,000 cattle will die. On the other hand, drought and high temperatures have contributed this year to an increase in the number of forest fires. An estimated 10,000 hectares of forest have been lost due to fires. What will happen to the equilibrium price and quantity in the beef market? Response option group (a) Price and quantity will increase (b) Price and quantity will decrease (c) Price will decrease and quantity will increase (d) The price is higher and the equilibrium quantity is smaller.
Northern Mexico faces the worst drought in its history. Its effects will exceed those caused by El Niño in 1998. The Mexican government is expected to declare the 12 northern states a disaster zone in the coming days. Juan Figueroa Fuentes, president of Agrobarzón, warned that if it does not rain in the next few days, more than 250,000 hectares sown with wheat, corn and sorghum will be lost. In addition, 170,000 hectares will stop being planted with other crops since it will be too late when it rains. In the same way, 50,000 cattle will die. On the other hand, drought and high temperatures have contributed this year to an increase in the number of forest fires. An estimated 10,000 hectares of forest have been lost due to fires. What will happen to the
Response option group
(a) Price and quantity will increase
(b) Price and quantity will decrease
(c) Price will decrease and quantity will increase
(d) The price is higher and the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
