1. Suppose that incomes have fallen on average, and that the state of Florida had an extremely favorable growing season for its orange crop. How would we expect that this will affect the supply curve and why? (The supply curve can remain static, the supply curve can shift to the left, we do not have enough information to say, or the supply curve will shift to the right)
The supply curve will shift to the right. This is because the favorable growing season will increase the supply of oranges, which will lead to a decrease in the price of oranges. This decrease in price will make oranges more affordable for consumers, which will increase the demand for oranges.
