A Freeze in Florida Devastates the Orange Crop at the Same

question 45

Multiple Choice

A freeze in Florida devastates the orange crop at the same time a new study is released showing the health benefits of vitamin C (leading consumers to want to buy more orange juice) . How will the equilibrium price and quantity of orange juice change in response to the combination of these two events?

• A) Equilibrium quantity will decrease, equilibrium price will increase.
• B) Equilibrium price will decrease, the effect on quantity is ambiguous.
• C) Equilibrium price will increase, the effect on quantity is ambiguous.
• D) Equilibrium quantity will increase, the effect on price is ambiguous.

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Definitions:

Superior

Often used to describe something that is above average in quality or performance, or higher in position or rank.

Deindividuation

A psychological state characterized by reduced self-awareness and decreased personal responsibility in group settings.

Group

A collection of individuals who come together to achieve a common goal or share a common interest, often characterized by some level of cohesion and interaction.

Individuality

The quality or character of a particular person or thing that distinguishes them from others of the same kind, often expressed through unique behaviors, thoughts, and feelings.