Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Suppose a severe freeze damages the Florida orange crop
Suppose a severe freeze damages the Florida orange crop. Everything else remaining unchanged, which of the following is most likely to be true?
a) Because of the shortage of oranges, consumers will reduce their demand in order to economize.
b) The supply curve for oranges will shift to the right.
c) Both the output and the price of oranges will decrease.
d) Both the supply curve and the demand curve for oranges will shift to the left.
e) The output of oranges will fall and the price will increase.
Expert Solution
The correct option is e) The output of oranges will fall and the price will increase.
Explanation:
Given that, severe freeze damaged the Florida orange crop when all other things remain unchanged. This crop damage will reduce the supply of oranges in the market. It commences to a shortage of oranges that leads to an increase in its price level with a decrease in the equilibrium quantity.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
