Answer to Question #277354 in Microeconomics for ASS

Question

When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country.

Answer 1

When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country because the production of oranges during cold season is extremely low. Generally, oranges produce more during hot months of the year but it declines when it is cold. As a result, the scarcity of oranges during the cold season make producers to hike their prices which translate to an increased price of orange juices that the final consumer buys