A severe freeze has damaged the Florida orange crop.The effect on the market for oranges will be a left shift of

Question

Quizplus · Accepted Answer

A freeze damaging the Florida orange crop will lead to a decrease in the quantity supplied, resulting in a leftward shift of the supply curve. The demand curve is not affected by the freeze, so choice A and D are incorrect. Choice B is incorrect because both the supply and demand curves are not affected. The outcome of a leftward shift in the supply curve could be a higher price for oranges, but it cannot be definitively stated without knowing the change in demand as well.

A Severe Freeze Has Damaged the Florida Orange Crop