In the late summer of 2005 some regions of the country were suffering from drought.What effect would we expect this to have on the stock of companies such as John Deere that manufacture farm equipment?
A)raise the demand for existing shares of the stock,causing the price to rise
B)decrease the demand for existing shares of the stock,causing the price to fall
C)raise the supply of the existing shares of stock,causing the price to rise
D)raise the supply of the existing shares of stock,causing the price to fall

Question

Quizplus · Accepted Answer

Drought conditions can negatively impact agricultural productivity, leading to decreased demand for farm equipment, which in turn can decrease the demand for shares of companies like John Deere, causing the stock price to fall.

In the Late Summer of 2005 Some Regions of the Country