Multiple Choice
In 2019, China was struggling with African swine fever, which killed more than 1 million pigs in China. Consider the market for pork. Ceteris paribus, what happened to Chinese firms' willingness-to-produce pork and to the amount of producer surplus, assuming demand held steady and the market sells at the equilibrium price?
A) They both increase.
B) They both decrease.
C) The willingness-to-produce rises and producer surplus falls.
D) The willingness-to-produce falls and producer surplus rises.
Correct Answer:
Verified
Correct Answer:
Verified
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