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Question 1 of 5

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The following graph represents the supply (S) and demand (D) for orange juice.

The graph shows ‘Quantity’ on the horizontal axis, and ‘Price’ on the vertical axis. The demand curve is a downward sloping line, while the supply curve is an upward sloping line.

If bad weather harms orange groves in Florida:

The curve shifts because are mainly affected.

Oranges are used in making orange juice, so producers will be primarily affected.
3

The graph shows ‘Quantity’ on the horizontal axis, and ‘Price’ on the vertical axis. The demand curve is a downward sloping line, while the supply curve is an upward sloping line.

The orange juice supply curve shifts because .

Oranges are an input in producing orange juice.
3

The graph shows ‘Quantity’ on the horizontal axis, and ‘Price’ on the vertical axis. The demand curve is a downward sloping line, while the supply curve is an upward sloping line.

The orange juice supply curve shifts because input costs go up.

Rising input prices shift the supply curve left, and decreasing input prices shift it right.
3

The graph shows ‘Quantity’ on the horizontal axis, and ‘Price’ on the vertical axis. The demand curve is a downward sloping line, while the supply curve is an upward sloping line.

As a result of the leftward shift of the supply curve, the equilibrium price of orange juice will .

As might be expected, higher costs for producers mean higher prices for consumers, which is consistent with a leftward shift of the supply curve.
3

The graph shows ‘Quantity’ on the horizontal axis, and ‘Price’ on the vertical axis. The demand curve is a downward sloping line, while the supply curve is an upward sloping line.

As a result of the leftward shift of the supply curve, the equilibrium quantity of orange juice will .

As might be expected, fewer oranges mean lesser orange juice, which is consistent with a leftward shift of the supply curve.
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