If a frost destroys half of the orange crop in Florida, the equilibrium price of oranges will rise.

Question

Quizplus · Accepted Answer

If a frost destroys half of the orange crop in Florida, the supply of oranges will decrease. This decrease in supply will lead to an increase in the equilibrium price of oranges. This is because, at the same demand level, there are fewer oranges available, causing buyers to bid up the price to acquire the available oranges. Therefore, the statement is true.

If a Frost Destroys Half of the Orange Crop in Florida