Group of answer choices.
A. the supply curve, resulting in a lower equilibrium price.
B. the supply curve, resulting in a higher equilibrium price.
C. the demand curve, as consumers try to economize because of the shortage.
D. the demand curve, resulting in a price ceiling in the market.
Answer:
B. the supply curve, resulting in a higher equilibrium price.
Explanation:
In this scenario, a severe freeze has damaged the Florida orange crop. Thus, the impact on the market for orange juice will be a leftward shift of the supply curve, resulting in a higher equilibrium price.
An equilibrium price can be defined as the price at which the quantity of goods demanded is equal to the quantity of goods supplied.
Additionally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.
<span>If the investment accelerator from an increase in government purchases is larger than the crowding out effect, then the multiplier is probably greater than one. The crowding out effect within economics is defined as a theory that when public sector spending rises, it can drive down or eliminate private sector </span>spending. Public sector spending is government spending whereas private sector spending is for-profit businesses that aren't owned or operated by the government.
