Question

APPENDIX REVIEW QUESTIONS will the equilibrium price of orange juice increase or dy/ crease in each of the following situations? LO3.7 upp a. A medical study reporting that orange juice reduces can- plus t cer is released at the same time that a freak storm de- recen ernm stroys half of the orange crop in Florida. b. The prices of all beverages except orange juice fall by they p half while unexpectedly perfect weather in Florida re-hoe w sults in an orange crop that is 20 percent larger than Identif price f normal. a. Rest 2. onsider the market for coffee beans. Suppose that the b. Dec c. Pur 5. Suppos rices of all other caffeinated beverages go up 30 percent while at the same time a new fertilizer boosts production at coffee plantations dramatically. Which of the following best describes what is likely to happen to the equilibrium price and quantity of coffee beans? LO3.7 a. Both the equilibrium price and the quantity will rise. b. The equilibrium price will rise but the equilibrium qu decline graphic and quar 6. Govern instance fertilizer an tity will fall. The equilibrium price may rise or fall but the equilib- rium quantity will rise for certain. creases industrie d. Neither the price change nor the quantity change can be other in determined for certain None of the above. firms in b libriump e. price ceiling will result in a shortage only if the ceiling would me is_the equilibrium price. LO3.7 spend mo the dema have simil a. The in b. The in a. Less than. b. Equal to . Greater than. d. Faster than. APPENDIX PROBLE MS 1. Demand and supply often shift in the retail market for gaso- line. Here are two demand

Answer 1

Please see the below answers.

1.

a. As per this situation, the equilibrium price of orange juice will increase.

b. As per this statement, the equilibrium price of orange juice will decrease.

2. The answer is c. The equilibrium price may rise or fall but the equilibrium quantity will rise for certain.

3. The answer is a. Less than.