Use the following to answer questions :
Figure: Supply and Demand in the Orange Juice Market
-(Figure: Supply and Demand in the Orange Juice Market) Look at the figure Supply and Demand in the Orange Juice Market. The market is currently in equilibrium at point C. Suppose a hurricane hits Florida, where oranges are grown. What will be the most likely new equilibrium point in the orange juice market?
A)A
B)B
C)D

Question

Use the following to answer questions :
Figure: Supply and Demand in the Orange Juice Market 
-(Figure: Supply and Demand in the Orange Juice Market) Look at the figure Supply and Demand in the Orange Juice Market. The market is currently in equilibrium at point C. Suppose a hurricane hits Florida, where oranges are grown. What will be the most likely new equilibrium point in the orange juice market?
A)A 
B)B 
C)D

Quizplus · Accepted Answer

The hurricane will reduce the supply of oranges, shifting the supply curve to the left. This will lead to a new equilibrium at point A, where the price of orange juice is higher and the quantity demanded is lower.

Use the Following to Answer Questions