Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 3 - Demand, Supply, and Market Equilibrium - Appendix - Problems - Page 81: 1

Answer

(a)Price will increase (b) Prices will decrease.

Work Step by Step

(a) The medical study has reported that orange juice can help in reducing the cancer, as a result, it will lead to an increase in the demand and hence there will be an upward pressure or movement on the prices. Due to the storm, Supply will decrease. Thus, prices will increase. (b) Here it will result in downward movement or pressure on prices. More production also leads to an increase in supply. Thus, prices will decrease.
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