Business, 21.05.2021 17:00 angie249

Suppose the equilibrium price of a pound of potatoes in all U. S. states is initially $1.20. Further, suppose there is an increase in potato demand in all U. S. states except West Virginia. This increase in demand causes potato prices in all U. S. states, except West Virginia, to increase. If the law of one price holds, potato sellers will eventually adjust the relative quantity of potatoes they sell in all U. S. states, including West Virginia. After this adjustment:. A) the West Virginia potato supply curve will shift rightward.
B) the West Virginia potato demand curve will shift rightward.
C) potato prices in West Virginia will fall and potato demand will increase in all other U. S. states.
D) the price of a pound of potatoes in all states that share a border with West Virginia will not change.
E) the price of a pound of potatoes in all states that share a border with West Virginia will fall.

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Suppose the equilibrium price of a pound of potatoes in all U. S. states is initially $1.20. Further...

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