2. You have been hired by a private consortium of South African orange growers to predict the impact on the price and output of oranges under the following conditions.
a. A major freeze destroys a large number of orange trees in South Africa
b. Scientists at the University of Pretoria discover a way to increase substantially the yield per orange tree without affecting the quality of the fruit
c. Medical researchers announce that drinking orange juice can reduce the risk of heart disease
d. The price of grapefruit drops
e. The rand exchange rate depreciates significantly against the Euro and sterling currencies
In each of the answers illustrate your results with a demand and supply graph.
The solution determines the effects on price and output.