Which of the following would be most likely to result from destruction of half of the Florida orange crop due to a hard freeze? a. an increase in the price of oranges b. a decrease in the demand for oranges c. an increase in the supply of oranges d. an increase in the quantity of oranges bought and sold

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Business

Haleigh Johns

24 October, 03:20

Which of the following would be most likely to result from destruction of half of the Florida orange crop due to a hard freeze? a. an increase in the price of oranges b. a decrease in the demand for oranges c. an increase in the supply of oranges d. an increase in the quantity of oranges bought and sold

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Answers (1)

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Gilbert Walton · Answer 1

The correct answer is option a.

Explanation:

Suppose half of the crop of oranges is destroyed due to hard freeze. This will cause a decrease in the supply of oranges. The supply curve for oranges will shift to the left. This leftward shift in the supply will lead to an increase in price level and a decrease in equilibrium quantity.

A favorable change in weather would have contributed to an increase in supply, causing the price level to fall.