A period of bad weather hurt the orange groves in Florida, from where many of the oranges grown for juice come. Supplies of oranges dropped greatly because of the bad weather. What is the most likely effect on the price of orange juice?

Question

A period of bad weather hurt the orange groves in Florida, from where many of the oranges grown for juice come. Supplies of oranges dropped greatly because of the bad weather. What is the most likely effect on the price of orange juice?

(1 point)
Responses

Prices will drop because people will buy less orange juice.

Prices will drop because people will buy less orange juice.

Prices will stay the same because oranges and orange juice are not the same good.

Prices will stay the same because oranges and orange juice are not the same good.

Prices will rise because the orange market and the orange juice market are closely connected.

Prices will rise because the orange market and the orange juice market are closely connected.

It is impossible to tell whether prices will change.

Answer 1

Prices will rise because the orange market and the orange juice market are closely connected.

Answer 2

The most likely effect on the price of orange juice is that prices will rise because the orange market and the orange juice market are closely connected.

Answer 3

The most likely effect on the price of orange juice due to the drop in supplies of oranges is that the prices will rise. This is because the orange market and the orange juice market are closely connected. When the supply of oranges reduces due to bad weather, the cost of oranges used for juice production increases. In turn, the higher cost of oranges leads to an increase in the price of orange juice. Therefore, the correct answer is, "Prices will rise because the orange market and the orange juice market are closely connected."