Business, 03.04.2020 02:43 MidnightAIY179

Suppose that the potato grower’s bank ratchets up the interest rate applicable to the grower’s adjustable-rate mortgage loan. This increases the size of the potato grower’s monthly mortgage payment. Illustrate the change in the mortgage payment by shifting the appropriate cost curve or curves. A. A Profits decrease; the short-run supply curve shifts down. B Profits decrease; the short-run supply curve is not affected. C Profits are unaffected; the short-run supply curve is not affected. D Profits decrease; the short-run supply curve shifts up.

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Suppose that the potato grower’s bank ratchets up the interest rate applicable to the grower’s adjus...