Answer to Question #77072 in Macroeconomics for clara

Question

Use the supply and demand curves to illustrate and explain the likely effects of the following events on the market for orange juice. Draw a separate diagram for each case, label your diagrams and clearly identify the direction of the change in both equilibrium price and quantity sold. Treat each part separately.
a. A recent research reports that vitamin C cures cancer, and orange juice is the best source of vitamin C.
b. Due to unfavorable weather conditions in apple growing states, price of apple juice doubles.
c. Freezing temperatures in California shrinks the orange crop to one-third its normal size.
d. The wages of orange pickers increases after a successful strike.
e. The U.S. government, in order to support the domestic orange growers, grants a 50-cents subsidy for each bushel of orange grown in the country.

Answer 1

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