A television station reports that the price of orange juice has declined but the quantity traded has increased. This situation could be caused by a(n)

Question

Quizplus · Accepted Answer

An improvement in the technology of producing orange juice could increase the efficiency of production, reducing costs and leading to a decline in the price of orange juice. This could then increase the quantity traded as consumers respond to the lower price. None of the other options provided would explain a situation where both price and quantity increase.

A Television Station Reports That the Price of Orange Juice