In 2007,an Unseasonably Dry Spring Led to a Sharp Decline

In 2007,an unseasonably dry spring led to a sharp decline in the quantity harvested of black morels,a wild mushroom found throughout the upper Midwest.Due to the scant harvest,the price of black morels rose from $9 per pound to nearly $45 per pound.In 2008,slightly above-normal rainfall levels led to a large black morel harvest.Assuming that the demand for black morels did not change from 2007 to 2008,we would expect the 2008 black morel supply to ________ and the equilibrium price of black morels to ________.

A) increase; rise
B) increase; fall
C) decrease; fall
D) decrease; rise

Correct Answer:

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