U.S. Orange Juice Shipments Plummet as Canadians Find Florida Orange Juice Hard to Swallow

Good Job! - The law of demand says as the price of a good rises, the quantity demanded of that good decreases, other things remaining the same. A change in demand occurs only when a factor other than a change in price influences buying plans.

Correct! - A substitute is a good that can be used in place of another good. Canadians can drink the American brand Tropicana or, Canadian brands like PC and Irresistible in its place.

Well Done! - Tropicana and PC orange juice are substitutes. As price of Tropicana rises in Canada, buyers switch from Tropicana to PC. The demand for PC orange juice increases and its price rises.