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

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

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 left

Answer 1

The correct response is: a shift of the supply curve for apple juice to the left.

This is because an increase in the price of orange juice could lead to producers reallocating their resources to produce more orange juice instead of apple juice, thus reducing the supply of apple juice.