In 2004, hurricanes destroyed a large portion of Florida's orange and grapefruit crops.In the market for citrus fruit in 2004
A)the supply curve shifted to the right resulting in an increase in the equilibrium price.
B)the supply curve shifted to the left resulting in an increase in the equilibrium price.
C)the demand curve shifted to the right resulting in an increase in the equilibrium price.
D)the demand curve shifted to the left resulting in a decrease in the equilibrium price.

Question

Quizplus · Accepted Answer

The hurricanes destroyed a large portion of Florida's orange and grapefruit crops, leading to a decrease in the supply of citrus fruit. As a result, the supply curve shifted to the left. Since the demand for citrus fruit remained relatively stable, the decrease in supply led to an increase in the equilibrium price. Therefore, the correct answer is B, the supply curve shifted to the left resulting in an increase in the equilibrium price.

In 2004, Hurricanes Destroyed a Large Portion of Florida's Orange