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Artyom0805 [142]
3 years ago
5

Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a

rightward shift of:
Business
1 answer:
Dmitrij [34]3 years ago
3 0

Answer:

<u>the supply curve</u>

Explanation:

Remember the supply curve shows the relationship between the amount of a commodity that a producer (or orange farmer) is <em>willing </em>to offer and at a particular price at any given time.

Because of the subsidies to orange farmers we expect the price of orange to become lesser in the future. Therefore the rightward shift occurs in supply curve for oranges due to favorable changes such as the new legislation which may lead to:

  1. Reduction in tax,
  2. Reduction in cost of factor of production,
  3. Expectation of fall in price in future,

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Answer:

The Price of Cocaine would rise drastically

Explanation:

If U.S Drugs Enforcement Agency impose higher restrictions in an effort to control illegal import of cocaine into the United States, this would directly impact the market for illegal drugs in the following ways:

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Thus, price of cocaine will rise drastically as an outcome of such a move.

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