In January a severe frost destroyed 1/3 of the American orange crop, and growers anticipated bankruptcy. By year's end, however, they realized that their profits were larger than ever. Which of the following could not explain this curious result?
A)There was a similar frost in exporting countries.
B)The demand for oranges shift to the left.
C)The demand for oranges shifted to the right.
D)The demand for oranges is price inelastic.

Question

Quizplus · Accepted Answer

If the demand for oranges had shifted to the left, this would mean that consumers were buying less oranges at any given price. This would lead to a decrease in profits for orange growers, rather than an increase, as stated in the question. Therefore, option B cannot explain the curious result.

Option A is a possible explanation because if exporting countries also suffered from a frost, then the supply of oranges available to the global market would decrease, which could increase the price of American oranges and therefore increase profits.

Option C is also a possible explanation because if the demand for oranges increased (shifted to the right), this would lead to an increase in the quantity demanded at any given price, which could also increase profits.

Option D is a possible explanation because if demand for oranges is price inelastic, this means that consumers are willing to pay a higher price for oranges even if the quantity supplied decreases. This could result in higher profits for orange growers due to the decrease in supply caused by the frost.

In January a Severe Frost Destroyed 1/3 of the American