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Following Hurricane Fiona, what happened to the market equilibrium in Puerto Rico due to a supply shock?
  • a)
    Equilibrium price decreased
  • b)
    Equilibrium quantity increased
  • c)
    Equilibrium price increased
  • d)
    Equilibrium quantity decreased
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Following Hurricane Fiona, what happened to the market equilibrium in ...
The supply shock led to an increase in equilibrium price and a decrease in equilibrium quantity.
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