Consider the world market for wheat. Suppose there is a major failure in Russia's O wheat crop due to a severe drought. Canada World The likely...
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Consider the world market for wheat. Suppose there is a major failure in Russia's
O
wheat crop due to a severe drought.
Canada
World
The likely effect on the equilibrium price and quantity in the world's wheat market
S
S
would be a(n) increase in price and a(n) decrease in quantity.
Explain why Canadian wheat farmers certainly benefit from this drought.
O A. Canadian farmers will gain a permanent comparative advantage
compared to European farmers.
O B. Canadian farmers will be able to gain enough market share to become a
Price
Price
world leader.
O C. Canadian farmers will supply all the wheat that European countries cannot
provide because of the drought.
O D. Canadian farmers can sell at the same price as the world price. As such,
their revenue will increase.
Quantity of Wheat (thou. of tonnes)
Quantity of Wheat (mill. of tonnes)

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D) Canadian farmers will sell at the same price as the world price as such their revenue will... View the full answer

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