Question

If the cost of producing orange juice​ increases, the equilibrium price of orange juice will​ ________ and the equilibrium quantity of orange juice will​ ________.A. decrease; increase B. increase; decrease C. decrease; decrease D. increase; increase

Answer 1

Answer:

B. increase; decrease

Explanation:

At equilibrium, the quantity demanded of orange juice equals the quantity supplied.

If the cost of producing orange juice increases, the quantity supplied would drop. This would lead to a rise in price and a fall in quantity demanded.

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