Answer to Question #286640 in Economics for akein

Question

Apples and oranges are substitutes. A freeze in Florida destroys most of the orange crop. What would you expect to happen to the market for the following:

a. Oranges?

b. Apples?

c. Orange Juice?

Answer 1

a. Oranges - supply decreases, prices grow

b. Apples - supply the same, prices grow

c. Orange Juice - supply decreases, prices grow