ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The market would be thrown into disequilibrium.
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Many new sellers would enter the market.
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Consumers would demand more of the fruit.
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The supply curve would shift to the right.
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Detailed explanation-1: -What would LIKELY happen to the market for oranges as a result of a severe frost in the South? The market would be thrown into disequilibrium.
Detailed explanation-2: -What would LIKELY happen to the market for fruits like these as a result of a severe frost in the South? A. The market would be thrown into disequilibrium.
Detailed explanation-3: -If the price of oranges goes up, we would expect an increase in demand for apples since consumers would move consumption away from the higher priced oranges towards apples which might be considered a substitute good. Complements, on the other hand, are goods that are consumed together, such as caramels and apples.
Detailed explanation-4: -Answer and Explanation: The equilibrium price will reduce and the equilibrium quantity will increase. If exceptionally good weather provides a much bigger than expected orange harvest, the supply for oranges will increase and the supply curve for oranges will shift to the right.
Detailed explanation-5: -The equilibrium price of orange is $2.00 per pound. The market price is more than the equilibrium price(P). When the price is more than the equilibrium price, the quantity supplied(QS) will be more than the quantity demanded(DD). This is because the producers will get a higher selling price for one pound of orange.