Question

One HEADLINE article in the text, "Bitter Florida cold drives up orange juice prices," describes the impact of a freeze on Florida crops. What will happen to the equilibrium quantity of citrus crops if the supply decreases?

Answer 1

Answer:

The equilibrium quantity will decrease

Explanation:

There will be a reduction in the supply of citrus crops and also reduction in orange juice produces from these fruits.

A shift in supply to the left will occur as a result of the cold. This will also result in reduction in equilibrium quantity demanded.

This is illustrated bin the attached diagram