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Furkat [3]
4 years ago
9

In recent years, the consumption of orange juice in the United States has fallen but the price of orange juice has risen. This i

s because the supply of orange juice has ________ and the demand for orange juice has ________.
Social Studies
1 answer:
Naya [18.7K]4 years ago
4 0

Answer:

Decreased; also decreased

Explanation:

The theory of supply and demand explains the relationship between the sellers of a particular goods or services and the buyers. The theory describes what affect the relationship amid the availability of a particular product and the need (or demand) for that product on its price.

According to the law, low supply and high demand increase the price of the goods and vice versa, and when there is a sharp decrease in demand for any product, there will be a decrease in price of that particular product.

Going back to the question we can conclude using this law that there can only be a fall in price of orange juice when there is a decrease in the amount of supply and also a corresponding decrease in the it's level of demand.

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