Ice Storms in Florida
Suppose it's winter, and there is an ice storm in Florida, affecting the orange crop. Which of these graphs represents the most likely change in supply and demand for orange juice throughout the US?
A - Demand shifts right, prices increase
B - Supply shifts left, prices increase
C - Supply shifts right, prices decrease
D - Demand shifts left, prices decrease
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1 solution
A freeze of oranges is likely to decrease the quantity of oranges available. Such an even would shift the supply curve left, causing increases in price for orange juice and decreasing the quantity of orange juice purchased.