ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The hurricane has damaged the orange trees; as a result, the supply of oranges will decrease, hence the supply curve of oranges will shift to its left. The quantity sold in the market will reduce.

Detailed explanation-2: -A freeze in Florida would cause a decrease in the supply of oranges. This decrease in supply would lead to an increase in the price of oranges, and hence an increase in the price of orange juice. As the price of orange juice rises, there will be a decrease in quantity demanded.

Detailed explanation-3: -The destruction of the orange crop by freeze will reduce the supply of oranges in the market. On the graph below, the decline in the supply of oranges is portrayed by the change in the supply curve from S0 to S1.

Detailed explanation-4: -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-5: -Answer and Explanation: If a freeze in Florida destroys most of the orange crops, then the supply of the oranges falls short, which raises the price of the oranges in the market. At the increased prices, the demand falls as quantity demanded and its price are inversely related.