Agricultural Extension Service
Help with Economics Question?
Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are your predictions?
a) A major freeze destroys a large number of the orange trees in Florida.
b) The scientists in the agricultural extension service of the University of Florida discover a way to double the number of oranges produced by each orange tree.
c) The American Medical Association announces that drinking orange juice can reduce the risk of heart attack.
d) The price of Florida grapefruit falls.
a–less oranges, the price goes up
b–eventually more oranges, the price goes down
c–slightly more demand for orange juice, probably no real effect on florida prices because so much juice comes from elsewhere. price may go up a little bit, but nothing to write home about.
d–florida grapefruit is not that popular, so this will probably have no effect at all
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