The market for orange juice is in equilibrium. Then the price of oranges increases. What will be the effect in the orange juice market?

Question

The market for orange juice is in equilibrium.   Then the price of oranges increases.  What will be the effect in the orange juice market?

Accepted Answer

Supply will decrease, increasing the price and decreasing the quantity.

Answer

Demand will decrease, increasing the price and decreasing the quantity.

Answer

Supply will increase, decreasing the price and increasing the quantity.

Answer

Demand will decrease, decreasing the price and decreasing the quantity.

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