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Prices Communicate Information About the Relative Value of Resources in the Marketplace

question 67

Essay

Prices communicate information about the relative value of resources in the marketplace. Which of the following would cause the marginal value and, hence, the price, of oranges to rise?

a.A freeze wipes out half of the Florida citrus groves.
b.Orange juice is shown to reduce blood cholesterol levels.
c.The price of grape, cranberry, and pineapple juice falls dramatically.


Definitions:

Writing Requirements

Legal stipulations that certain agreements, contracts, or documents must be in written form to be legally valid and enforceable.

Formal Document

A document that adheres to established rules or formats, often used for legal, official, or ceremonial purposes.

Standard Contract

A predefined legal agreement with set terms and conditions used in common transactions.

Verbal Agreement

A contract or agreement made through spoken words and not formally recorded in writing, yet legally binding under certain conditions.

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