When a hurricane rips through Florida, the price of oranges rises because the a

Economics Dec 08, 2020

When a hurricane rips through Florida, the price of oranges rises because the

a. demand curve shifts to the left.

b. supply curve shifts to the right.

c. demand curve shifts to the right.

d. supply curve shifts to the left.

e. supply and demand curves both shift to the left.

Expert Solution

The correct option is d. supply curve shifts to the left.

Explanation:

Hurricane is a typical natural disaster that defines the cyclone or storm, which affects the crops adversely. Given that the hurricane rips through Florida, it implies that Florida's crop is affected negatively, such as orange crop. As a result, the supply of oranges will reduce in the market that leads to a shortage of orange in the market. As a result, the price of oranges increases.

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