A good weather in Spain results in good crop of oranges causing the prices of both oranges and orange juice to fall. As a result, the consumer surplus in the market for oranges
A)decreases, and the consumer surplus in the market for red wine decreases.
B)decreases, and the consumer surplus in the market for red wine increases.
C)increases, and the consumer surplus in the market for red wine decreases.
D)increases, and the consumer surplus in the market for orange juice increases.

Question

Quizplus · Accepted Answer

When the price of oranges and orange juice falls due to a good crop, the consumer surplus in both markets increases because consumers are getting more value for their money.

A Good Weather in Spain Results in Good Crop of Oranges