Florida’s Smallest Citrus Crop in a Century

EconEye Admin

3 years ago

Florida’s orange trees have suffered from hurricanes, and most of Florida’s groves have been infected by greening disease, which causes trees to produce green and bitter fruit. The price of orange juice is rising. Demand for orange juice is going to decrease because consumers can’t afford it and many will not like the taste.—washingtonpost.com

Answer the following questions to check your understanding of the story.

Is the demand for orange juice decreasing as reported in the news clip?

a) No, the rising price is decreasing the quantity of normal sweet orange juice demanded.

b) No, the demand for sweet orange juice is going to increase.

c) Yes, consumers can’t afford the higher prices.

d) Yes, less orange juice is available.

Wrong! - When does the demand for orange juice decrease? When does the quantity demanded decrease?

Well Done! - When the price of orange juice rises, the quantity of normal sweet orange juice demanded decreases, but demand doesn’t change.

Why is the price of orange juice rising?

The price of orange juice is rising because ____________.

a) the demand for orange juice is decreasing by more than supply is increasing

b) the supply of orange juice is decreasing

c) the supply of orange juice is increasing and the demand for normal sweet orange juice is increasing

d) the supply of orange juice and the demand for orange juice are both decreasing

Wrong! - How does a decrease in supply change the price of orange juice? Has the demand for orange juice changed?

Good Job! - The destruction of Florida’s orange groves by hurricanes and the damage caused by greening disease has decreased the supply of oranges and the supply of orange juice. When the supply of orange juice decreases, the price of orange juice rises.

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