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For each of the following events, describe the effect of the event on prices for one of these goods: food, housing, or oil.
Make your best guess as to what might happen in the case of each event, and explain your reasoning for why the event might or might not affect prices for a particular good

1. Temperatures rise due to global warming, and the growing season for crops lengthens.










2. The Environmental Protection Agency relaxes environmental rules on timber production.










3. International terrorists threaten to detonate a nuclear weapon.











4. The Federal Reserve chairman says that the central bank will raise interest rates.









5. A free-trade agreement between the United States and Mexico is enacted.








6. A tariff on exotic fruit is doubled.

Respuesta :

michell96

The results of these situations will bring increases in the price of oil, housing and food, because they represent threats to their production.

What is a threat?

A threat is a term that refers to a crime or misdemeanor in which an illicit future evil is announced in order to cause fear in the threatened person.

In accordance with the foregoing, the situations described pose a threat to the rise in prices of some product because it will cause a destabilization of the normal situation of the same. For example:

  1. Temperatures rise due to global warming, and the growing season for crops lengthens. - Causes an increase in food because the supply of food decreases.
  2. The Environmental Protection Agency relaxes environmental rules on timber production. - The value of household items made of wood is reduced.
  3. International terrorists threaten to detonate a nuclear weapon. - The value of oil is increased due to the fact that it will be a more demanded resource to mobilize troops and weapons to prevent this terrorist action.
  4. The Federal Reserve chairman says that the central bank will raise interest rates. - Household products are going to rise because central bank interest will do the same.
  5. A free-trade agreement between the United States and Mexico is enacted. - The price of imported food can rise because free trade agreements impose tariffs on foreign products.
  6. A tariff on exotic fruit is doubled. - The value of this food is increased, while the value of others may increase due to the demand for other fruits.

Learn more about threats in: https://brainly.com/question/3275422

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