An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is only half of what was produced last year. You accurately predict that this

A) will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the demand for cotton will fall.
B) will shift the supply curve of cotton to the right, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
C) will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the quantity demanded of cotton will decrease.
D) will shift the supply curve of cotton to the left, the equilibrium price of cotton will increase, and the demand for cotton will fall.

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Qu?nh Anh Nguy?n ??ng · Accepted Answer

Final Answer : C, Explanation :  A decrease in the cotton crop due to pest infestation reduces the available supply of cotton, shifting the supply curve to the left. This reduction in supply, with demand remaining constant, leads to an increase in the equilibrium price of cotton. As the price increases, the quantity of cotton demanded decreases, but the overall demand for cotton does not change; only the quantity demanded at the new higher price does.

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