Question

Suppose that a natural disaster substantially increases the cost of producing cheese. What should happen to the price and quantity of cheese?
a. The price of cheese rises and the quantity of cheese rises.
b. The price of cheese falls and the quantity of cheese rises.
c. The price of cheese falls and the quantity of cheese falls.
d. The price of cheese rises and the quantity of cheese falls.
e. None of the above is correct

Answer 1

D.