A period of bad weather hurt the orange groves in Florida, from where many of the oranges grown for juice come. Supplies of oranges dropped greatly because of the bad weather. What is the most likely effect on the price of orange juice?
(1 point)
Responses
Prices will drop because people will buy less orange juice.
Prices will drop because people will buy less orange juice.
Prices will stay the same because oranges and orange juice are not the same good.
Prices will stay the same because oranges and orange juice are not the same good.
Prices will rise because the orange market and the orange juice market are closely connected.
Prices will rise because the orange market and the orange juice market are closely connected.
It is impossible to tell whether prices will change.
1 answer
The most likely effect on the price of orange juice, given that supplies of oranges dropped greatly due to bad weather, would be:
Prices will rise because the orange market and the orange juice market are closely connected.
When the supply of oranges decreases, it generally leads to an increase in the price of oranges, which in turn affects the production costs of orange juice, leading to higher prices for consumers.
