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 a significant drop in the supply of oranges due to bad weather, would be:
Prices will rise because the orange market and the orange juice market are closely connected.
This is because orange juice is made from oranges, and a decrease in the supply of oranges typically leads to higher prices for orange juice due to reduced availability of the primary input.
