Given the abundance of California oranges,the demand for Florida oranges will _____
A)be less elastic than if there were no California oranges.
B)be more elastic than if there were no California oranges.
C)be as elastic as it would have been had there been no California oranges.
D)be perfectly elastic.
E)be perfectly inelastic.

Question

Quizplus · Accepted Answer

The abundance of California oranges will increase the substitutes available in the market, making the demand for Florida oranges more elastic. Consumers will be more likely to switch to California oranges as a substitute when the price of Florida oranges increases. Thus, the demand for Florida oranges will be more responsive to changes in price when there is an abundance of California oranges.

Given the Abundance of California Oranges,the Demand for Florida Oranges