4. "The frost in Northern Florida is warming the hearts of Texas Orange growers. Due to the extensive damage to the Florida orange crop, Texas Oranges are commanding their highest prices ever.” Which of the following statements best explains the economics of the quotation? The supply of Florida oranges has increased as a result of the frost, causing their price to increase and the demand for the substitute Texas oranges to also increase. a. b. C. The supply of Florida oranges has decreased as a result of the frost, causing the demand for Texas oranges to increase and their prices to rise. The demand for Florida oranges has been reduced by the frost, causing
4. "The frost in Northern Florida is warming the hearts of Texas Orange growers. Due to the extensive damage to the Florida orange crop, Texas Oranges are commanding their highest prices ever.” Which of the following statements best explains the economics of the quotation? The supply of Florida oranges has increased as a result of the frost, causing their price to increase and the demand for the substitute Texas oranges to also increase. a. b. C. The supply of Florida oranges has decreased as a result of the frost, causing the demand for Texas oranges to increase and their prices to rise. The demand for Florida oranges has been reduced by the frost, causing
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 8PA
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While supply refers to the total amount of a product made accessible on the market, demand is described as the consumers' capacity to make a purchase. The law of demand asserts that a commodity's demand and price are inversely related, in contrast to the rule of supply, which claims that a commodity's supply and price are directly related.
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