3041EconomicsMedium
Suppose a frost destroys much of the Florida orange crop. At the same time, suppose consumer tastes shift toward orange juice, What would we expect to happen to the equilibrium price and quantity in the market for orange juice?
AThe impact on both price and quantity is ambiguous.
BPrice will increase, quantity will increase
Cprice will increase, quantity will decrease
Dprice will increase, quantity is ambiguous.
Eprice will decrease, quantity is ambiguous
Correct answer
D. price will increase, quantity is ambiguous.
Explanation
The correct answer is price will increase, quantity is ambiguous..