Question

Show the change in the market for orange juice that is consistent with the following statement: "When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country."

Answer 1

Answer:

A cold snap hits Florida, as a result crops in Florida get affected by this freezing temperature. This cold temperature in Florida also affects the crops of orange, so there is a reduction in the supply of oranges in the supermarkets. Thus, there is a shortage of oranges in the market.

Therefore, decrease in the supply of oranges will generally lead to higher price of oranges in the markets.

This rise in price of oranges is due to the cold snap which damages the orange crops.