What is a probable consequence of a natural disaster affecting crop supply?

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Prepare for the TAMU ECON202 Exam 2. Study with comprehensive resources, including flashcards and multiple choice questions. Gain insights into economic concepts and exam strategies to excel!

A natural disaster that affects crop supply leads to a significant reduction in the quantity of goods available in the market, which creates a shortage of the affected goods. When crops are damaged or destroyed, the total supply decreases. In economic terms, when supply decreases while demand remains stable, the market experiences a gap between the quantity demanded and the quantity supplied, leading to a shortage.

This shortage typically results in higher prices as consumers compete for the limited available goods. Producers may also respond to the decreased supply by raising prices to balance out the market situation. Therefore, C is the most probable consequence of a natural disaster affecting crop supply, as it accurately captures the relationship between reduced supply and market dynamics.