# Chapter 1. SP_Chiang_Chapter03_002

## Step 1

Solved Problems
true
true
You must read each slide, and complete any questions on the slide, in sequence.

### Question

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

If bad weather harms orange groves in Florida:

a. The eXCPtmoNtYZtYgJBQANZEOLQypc= curve shifts because exbghkXn0VxGVlxBYcx58qRvmLJnV+9h are mainly affected.

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

### Question

b. This curve shifts because 1I9a1uCNY45s63EREzRmujZwduXSyAJLTa3Ab/UnSlNpTPA9njPU6ydt4XZsyf/lhhVX2p2pjTcT4ZkQiyTk1jEGTM6yE+ot

Oranges are an input in producing orange juice.
Oranges are an input in producing orange juice.

### Question

c. This curve shifts rmBT3kQ7hV9LhKQVBeTdjg== because input costs go up.

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

### Question

d. As a result, the equilibrium price of orange juice will J6brYKf/NFTMGA+ssGsCfrJ3rMxuCcVX03OGC1aCY4z1oHxw.

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

### Question

e. Likewise, the equilibrium quantity of orange juice will YKTXk1Jw32MiGPRFM4GH8CGSxf38NGsOviyWvzGlyS3x6YC+.

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