Demand for orange juice increases at the same time that the supply decreases. Which of these could explain that scenario? A) Consumers hear that citrus-based sugars increase the risk of diabetes, while citrus crop suffer from a severe frost. B) Consumers hear of the benefits of vitamin C contained in oranges, while citrus farmers suffer from a severe frost. C) Consumers hear of the benefits of vitamin C contained in oranges, while citrus farmers enjoy their best harvest in years. D) Consumers hear that citrus-based sugars increase the risk of diabetes, while citrus farmers enjoy their best harvest in years.

Question

hendersonmarkay hendersonmarkay

14-11-2018
Social Studies

contestada

Demand for orange juice increases at the same time that the supply decreases. Which of these could explain that scenario? A) Consumers hear that citrus-based sugars increase the risk of diabetes, while citrus crop suffer from a severe frost. B) Consumers hear of the benefits of vitamin C contained in oranges, while citrus farmers suffer from a severe frost. C) Consumers hear of the benefits of vitamin C contained in oranges, while citrus farmers enjoy their best harvest in years. D) Consumers hear that citrus-based sugars increase the risk of diabetes, while citrus farmers enjoy their best harvest in years.

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The correct answer would be option B, Consumers hear of the benefits of vitamin C contained in oranges, while citrus farmers suffer from a severe frost.

Demand for orange juice increases at the same time that the supply decreases. The above mentioned scenario best explains the situation.

Explanation:

It is a common law of economics that when there is a shortage in the supply of a product, the demand for that product increases, and vice versa. There are other factors as well which affect the demand and supply of a product.

In the given scenario, The demand for the orange juice increases because people hear the benefits of vitamin C and they want to consume orange juice to get the benefits of Vitamin C through oranges. On the other hand, farmers who harvest oranges are facing extreme and severe frost, which reduces the supply of Oranges to the market.

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