If a freeze destroys oranges before they are harvested,the equilibrium price of an orange ________ and the equilibrium quantity ________.
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) does not change; decreases

Question

Quizplus · Accepted Answer

A freeze destroying oranges before they are harvested would reduce the supply of oranges. This decrease in supply, with demand remaining constant, would lead to an increase in the equilibrium price and a decrease in the equilibrium quantity.

If a Freeze Destroys Oranges Before They Are Harvested,the Equilibrium