The state of Florida is experiencing a drought that has caused the price of water that farmers use to grow oranges to rise. This will cause a decrease in the

Question

Quizplus · Accepted Answer

The increase in the price of water, a key input for growing oranges, makes it more expensive for farmers to produce oranges, leading to a decrease in the supply of oranges. This is because the term "supply" refers to the total amount of a product that producers are willing and able to sell at various price levels, and an increase in production costs (like water) typically reduces the amount producers are willing or able to sell.

The State of Florida Is Experiencing a Drought That Has