Suppose irregular weather patterns caused very poor yields for orange farmers this past year. Which factor of supply would this change in the market for orange juice?
A) Technology
B) Price of input
C) Number of sellers
D) Price of related good

Question

Quizplus · Accepted Answer

The poor yields for orange farmers can be seen as a decrease in the supply of oranges, which would increase the price of inputs for orange juice production. This is because there would be less oranges available for juicing, and the demand for oranges would remain relatively the same. This decrease in supply would in turn increase the price of orange juice as producers would have to pay more for the limited supply of oranges, leading to a decrease in the quantity demanded.

Suppose Irregular Weather Patterns Caused Very Poor Yields for Orange