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? For each part, sketch a graph showing the appropriate demand and supply analysis.
a. A major freeze destroys a large number of the orange tree in Florida.
b. The scientist in the agricultural extension service of the University of Florida discover a way to double the number of oranges produced by 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.
Here's my response. See the attached step-by-step guide and illustrations on how the problems were solved
a. A major freeze destroys a large number of orange trees in Florida.
Answer: There will be a decrease in the output of oranges. Price of oranges would go up.
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This solution discourses on the dynamics of the law of supply and demand in four specific situations. A step-by-step instruction with graphical illustrations is attached.