Consider that the market for corn in the U.S. was at equilibrium. Then hailstorm

Question

Consider that the market for corn in the U.S. was at equilibrium. Then hailstorm kills the entire corn plantation in Iowa. What will happen to the price and quantity of corn sold in the U.S.?

Equilibrium price falls, equilibrium quantity increases.

Equilibrium price rises, equilibrium quantity falls.

Equilibrium price falls, equilibrium quantity falls.

Equilibrium price rises, equilibrium quantity rises.

Equilibrium price falls, equilibrium quantity increases.

Equilibrium price rises, equilibrium quantity falls.

Equilibrium price falls, equilibrium quantity falls.

Equilibrium price rises, equilibrium quantity rises.

Explanation / Answer

Answer
Equilibrium price rises, equilibrium quantity falls.
The supply of corn decreases because of the hailstorm kills the entire corn plantation in Iowa. Which shifts the supply curve to the left and up so the price increases and quantity in the equilibrium decreases.

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