(Solution) - Prices communicate information about the relative value of resou -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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Prices communicate information about the relative value of resources. Which of the following would cause the relative value and, hence, the price of potatoes to rise?
a. Fungus infestation wipes out half the Idaho potato crop.
b. The price of potato chips rises.
c. Scientists find that eating potato chips makes you better looking.
d. The prices of wheat, rice, and other potato substitutes fall dramatically.