If a Drought in Florida Reduces the Amount of Oranges

question 158

Multiple Choice

If a drought in Florida reduces the amount of oranges grown, then

• A)the demand curve of Florida oranges shifts to the left.
• B)the demand curve of Florida oranges shifts to the right.
• C)the supply curve of Florida oranges shifts to the left.
• D)the supply curve of Florida oranges shifts to the right.
• E)both the supply and demand curve of Florida oranges shift to the right.

---

Definitions:

Debt Financing

Raising capital through the borrowing of funds to be paid back at a later date, typically with interest.

Static Theory

A theory that assumes that certain economic factors remain constant over time in economic modeling or analysis.

Marginal Tax Rate

The rate at which the last dollar of a person’s income is taxed, reflecting the percentage of additional income that is taken in taxes.

Financial Distress

A situation where a company or individual cannot generate enough revenue or income to cover operating expenses or financial obligations.