A business produces apple juice and orange juice. The price of orange juice has increased from $2.00 to $2.50 . This can be modeled by _____.(1 point)

Question

Responses

a downward movement along the supply curve for apple juice
a downward movement along the supply curve for apple juice

a shift of the supply curve for apple juice to the right
a shift of the supply curve for apple juice to the right

an upward movement along the supply curve for apple juice
an upward movement along the supply curve for apple juice

a shift of the supply curve for apple juice to the left
a shift of the supply curve for apple juice to the left

Answer 1

The increase in the price of orange juice, which is a substitute for apple juice, may lead to an upward movement along the supply curve for apple juice. This is because as the price of orange juice rises, producers may be incentivized to allocate more resources to produce apple juice, anticipating greater demand for it as a substitute.

So, the correct answer is:

an upward movement along the supply curve for apple juice