All else equal, a shortage of orange juice would cause the
A)equilibrium quantity of breakfast drinks to increase and the equilibrium price of breakfast drinks to decrease.
B)equilibrium price of breakfast drinks to increase and the equilibrium quantity of breakfast drinks to decrease.
C)equilibrium price and quantity of breakfast drinks to increase.
D)equilibrium price and quantity of breakfast drinks to decrease.

Question

Quizplus · Accepted Answer

A shortage of orange juice (an input in the production of breakfast drinks) would decrease the supply of breakfast drinks, shifting the supply curve to the left. This would result in an increase in the equilibrium price of breakfast drinks, and a decrease in the equilibrium quantity of breakfast drinks.

All Else Equal, a Shortage of Orange Juice Would Cause