A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:

the supply curve.

the demand curve, as consumers try to economize because of the shortage.

both the supply and demand curves.

the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price

Question

Mathematics

Lamar Lloyd

8 March, 10:10

A severe freeze has once again damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of:

the supply curve.

the demand curve, as consumers try to economize because of the shortage.

both the supply and demand curves.

the supply curve and a rightward shift of the demand curve, resulting in a higher equilibrium price

+1

Answers (1)

Know the Answer?

Xiomara · Answer 1

the supply curve.

Step-by-step explanation:

Since orange crops were damaged by the severe freeze, producers weren't able to keep the same supply. Supply will decrease (leftward shift of the supply curve) while demand stays the same, resulting in a higher equilibrium price.

*Note that there is no shift of the demand curve since demand is not affected by the damaged crops.