If the orange crop turns out to be unusually small,
A)orange growers will likely gain and orange juice sellers will likely lose.
B)orange growers will likely lose and orange juice sellers will likely gain.
C)both orange growers and orange juice sellers will likely lose.
D)both orange growers and orange juice sellers will likely gain.

Question

Quizplus · Accepted Answer

When the orange crop is small, the supply of oranges decreases. This typically leads to higher prices for oranges because the demand remains constant or increases. Orange growers benefit from these higher prices, earning more per orange. However, orange juice sellers face higher costs for their primary input (oranges), which can reduce their profit margins if they cannot fully pass these costs onto consumers. Thus, orange growers are likely to gain, and orange juice sellers are likely to lose.

If the Orange Crop Turns Out to Be Unusually Small