You Notice That the Price of Orange Juice at Your

question 170

Multiple Choice

You notice that the price of orange juice at your local grocery store has increased. Which of the following statements is not a possible explanation for the rise in the price of orange juice?

• A)​Frosty weather destroys oranges causing the price of oranges to increase.
• B)​As a result of an increase in income, consumers wish to purchase more orange juice at every price level.
• C)​A recent scientific study is reported in the press that suggests that apple juice may be contaminated with pesticides.
• D)​Due to the bioengineering of orange trees, the domestic supply of oranges increases.

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Definitions:

Rent Out

The act of leasing or renting one's property to another party in exchange for payment.

Joint Costs

Costs that are incurred in the process of producing two or more products or services simultaneously and are not readily assignable to individual products.

Inventory Valuation

The method used by businesses to assess the value of their inventory, taking into account the cost of acquiring or producing the goods and any market changes.

Profitability of Joint Products

The assessment of earnings from products that are produced simultaneously from the same process and cannot be distinguished cost-wise until a certain point of production.