If a drought in Florida reduces the amount of oranges grown, then
A)the demand curve of Florida oranges shifts to the left.
B)the demand curve of Florida oranges shifts to the right.
C)the supply curve of Florida oranges shifts to the left.
D)the supply curve of Florida oranges shifts to the right.
E)both the supply and demand curve of Florida oranges shift to the right.

Question

Quizplus · Accepted Answer

If a drought in Florida reduces the amount of oranges grown, it will lead to a decrease in the supply of Florida oranges. The decrease in supply will result in a shift of the supply curve to the left. This will lead to an increase in the price of Florida oranges, and possibly a decrease in the quantity demanded. It will not affect the demand curve as the demand for Florida oranges will remain the same.

If a Drought in Florida Reduces the Amount of Oranges