An unexpected freeze has damaged the Florida orange crop. As a result orange juice producers will pay more for oranges and ultimately consumers will have to pay more for orange juice at the grocery store. The impact on the market for orange juice will cause which of the following to shift to the left?

a- the supply curve b-both the supply and demand curve c-the demand curve d-the production curve

Respuesta :

Answer:

The correct answer for the following situation:

An unexpected freeze has damaged the Florida orange crop. As a result orange juice producers will pay more for oranges and ultimately consumers will have to pay more for orange juice at the grocery store. The impact on the market for orange juice will cause which of the following to shift to the left?

Is:

a- the supply curve

Explanation:

A supply curve is a concept to represent graphically the correlation between the cost of a good or a service and the quantity of that good or service supplied in a certain period. In our case the environmental conditions allow the supply to be lower than expected therefore it will be the one that will shift to the left in the graphic.

The supply curve will shift towards left as the prices of oranges increases, it will impact on the consumer's demand also but if prices of oranges increases, it would result in less supply of oranges.

What is the Impact on supply curve?

  • The crop of oranges damage due to unexpected loss, as a result the price of oranges increases,

  • If the price of oranges increases, retailer of orange juice supply less of orange juice, because oranges are the factor of production for orange juice retailer,

  • So ultimately, consumer have to pay more for oranges as a result, demand for orange juice will decrease,

  • if the demand for orange juice decreases, it will impact on the seller that he will produce less of juice,

  • As a result, the supply curve will shift towards left.

Therefore, the option [A] is correct.

Learn more about supply curve, refer:

https://brainly.com/question/1915798