The Demand for Orange Juice Is Price Elastic

question 160

Multiple Choice

The demand for orange juice is price elastic. A severe frost, which destroys large quantities of oranges will

• A)lower the equilibrium price but increase total consumer spending on juice.
• B)decrease the equilibrium quantity and decrease total consumer spending on juice.
• C)decrease both the equilibrium quantity and the price of juice.
• D)raise the equilibrium price as well as total consumer spending for juice.
• E)raise the equilibrium price but leave total consumer spending for juice constant.

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Definitions:

Sewage

Wastewater that typically contains contaminants and is produced by residential, industrial, and commercial establishments, requiring treatment before being released into the environment.

Natural Extinction

The process by which species become extinct due to natural factors such as environmental changes, loss of habitat, or failure to adapt to competition.

Tropical Rain Forests

Diverse ecosystems located around the Earth's equator characterized by high annual rainfall, constant warm temperatures, and a vast variety of plant and animal life.

Deforestation

The large-scale removal of forest or tree cover, often to make land available for agricultural, urban, or other types of development, leading to ecological imbalances.