Wenatchee is the apple capital of the world (or at least that's what the sign says). One of the many great things about apples is that the firms who produce it are likely price takers in both input and output markets. Imagine that there is a hurricane in Florida which damages a large part of the orange crop which is typically grown there. a. Show the effect of this in the orange market. b. Show the effect of this in the apple market. (Assume that no apples are grown in Florida.) c. Show the effect of this in the market for orchard workers in Wenatchee (the apple capital of the world). Please make sure to label the axes appropriately for a labor market. Briefly explain the reason for what you draw here in relation to the other parts
Wenatchee is the apple capital of the world (or at least that's what the sign says). One of the many great things about apples is that the firms who produce it are likely
Imagine that there is a hurricane in Florida which damages a large part of the orange crop which is typically grown there.
a. Show the effect of this in the orange market.
b. Show the effect of this in the apple market. (Assume that no apples are grown in Florida.)
c. Show the effect of this in the market for orchard workers in Wenatchee (the apple capital of the world). Please make sure to label the axes appropriately for a labor market. Briefly explain the reason for what you draw here in relation to the other parts.
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