A period of bad weather hurt the orange groves in Florida, from where many of the oranges grown for juice come from. Supplies of oranges dropped greatly because of the bad weather. What is the most likely effect on the price of orange juice?
a) Prices will drop because people will buy less orange juice.
b) Prices will stay the same because oranges and orange juice are not the same good.
c) Prices will rise because the orange market and the orange juice market are closely connected.
d) It is impossible to tell whether prices will change.
Is it c?
Prices for digital music files drop greatly. How is the demand for digital music players likely to change?
a) Demand will rise, because the demand for digital music files will rise.
b) Demand will rise, because the demand for digital music files will fall.
c) Demand will fall, because supplies of digital music files will drop.
d) Demand will fall, because demand of digital music files will rise.
Is it a?
1 answer
I agree with both your answers.