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 arecommanding 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 Texasoranges to also increase.a.b.C.d.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, causingtheir prices to fall and therefore increasing the supply of the substituteTexas oranges.The demand for Florida oranges has been reduced by the frost, causing agreater demand for the Texas oranges and an increase in their price.

Answered: 4. "The frost in Northern Florida is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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.
d.
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
their prices to fall and therefore increasing the supply of the substitute
Texas oranges.
The demand for Florida oranges has been reduced by the frost, causing a
greater demand for the Texas oranges and an increase in their price.

Expert Solution

Step 1

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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