Orange juice producers sell a lower quantity of orange juice even with a higher market price. Which of the following events would have this effect?
A)An increase in the cost of fertiliser used for orange orchards.
B)A decrease in the price of orange juice processing.
C)A decrease in income, assuming orange juice is a normal good.
D)A decrease in the population.

Question

Quizplus · Accepted Answer

An increase in the cost of fertilizer raises production costs, leading to a decrease in supply, which can result in a higher market price and lower quantity sold.

Orange Juice Producers Sell a Lower Quantity of Orange Juice