Question
An ABC News report in January 2020 stated: Sad news for salad fans who enjoy the peppery bite of arugula over other lettuces: there's a
An ABC News report in January 2020 stated: "Sad news for salad fans who enjoy the peppery bite of arugula over other lettuces: there's a national shortage. The shortfall is due to the unexpectedly cold and wet winter weather facing growers throughout the Southwest."
a. Draw a supply and demand graph that starts at equilibrium and illustrates this shortage. Feel free to assume that both demand and supply are linear.
b. What will happen to the total revenue of arugula growers as a result of this cold and wet weather? How does the demand elasticity for arugula affect your answer? Explain.
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