Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice)reduces the risk of cancer,and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?

Question

Quizplus · Accepted Answer

Since there is a new substitute for apple juice that is deemed to have health benefits, the demand for apple juice may decrease (shift leftward) because some consumers may switch to orange juice. On the other hand, due to the decrease in the apple crop, the supply of apple juice may decrease (shift leftward) as well, causing the price to potentially increase. Therefore, the price of apple juice might rise or fall and the quantity of apple juice falls.

Suppose That a New Study Is Released Stating That Consumption