The U.K. imports about 65% of its fresh fruit and vegetables from the rest of the European Union, with Spain being the biggest individual source. A WSJ article
(Feb. 8, 2017) noted the following events in the U. K. market for fresh produce. First, bad weather and an unseasonably cold winter in Spain disrupted supply.
Second, press coverage and public debate about vegetable shortages have spurred unusual demand in the U.K. How do these two events affect the market for
fresh produce in the U.K.?
A. The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price
and an uncertain effect on the equilibrium quantity.
B. The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an decrease in the equilibrium
quantity and an uncertain effect on the equilibrium price.
C. Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect
on the equilibrium price.
D. Both the supply and demand curves have shifted to the left. As a result, there has been a decrease in the equilibrium quantity and an uncertain effect
on the equilibrium price.
