Question #286640
Apples and oranges are substitutes. A freeze in Florida destroys most of the orange crop. What would you expect to happen to the market for the following:
a. Oranges?
b. Apples?
c. Orange Juice?
Expert's answer
a. Oranges - supply decreases, prices grow
b. Apples - supply the same, prices grow
c. Orange Juice - supply decreases, prices grow
