Orange juice drinkers want to consume more orange juice at a lower price.Which of the following events would have this effect?
A)a decrease in the price of orange juice processing
B)an increase in the cost of fertilizer used for orange groves
C)a decrease in income, assuming orange juice is a normal good
D)a decrease in the population

Question

Quizplus · Accepted Answer

A decrease in the price of orange juice processing would lower the cost of producing and distributing orange juice, resulting in a lower price for consumers. This would lead to an increase in the quantity demanded of orange juice, allowing orange juice drinkers to consume more orange juice at a lower price.

B and C would have the opposite effect, increasing the cost of production and decreasing consumers' purchasing power, respectively. D is irrelevant to the price and quantity of orange juice demanded.

Orange Juice Drinkers Want to Consume More Orange Juice at a Lower