If a frost destroys much of the grapefruit crop, assuming a positively sloped supply curve and a negatively sloped demand curve, total surplus:
A) will increase.
B) will decrease.
C) will not change.
D) may change, but we cannot determine the change without more information.

Question

Quizplus · Accepted Answer

A frost destroying much of the grapefruit crop would decrease the supply, leading to higher prices and lower quantities sold. This would reduce both consumer and producer surplus, thus decreasing total surplus.

If a Frost Destroys Much of the Grapefruit Crop, Assuming