Question

Suppose you are the manager of a California orange orchard. How would you expect the following events to affect the market equilibrium price you receive for a bottle of orange juice? Please state the shift (leftward or rightward) of demand or supply.
a. The price of comparable Florida orange juice decreases.
b. One hundred new fruit juice processing plants open in California.
c. The price of a bottle increases significantly due to new government anti-shatter regulations.
d. Researchers discover a new fruit juice processing technology that reduces production costs.
e. The average age of consumers increases, and younger people drink less orange juice.

Answer 1

Answer:

a. The price of comparable Florida orange juice decreases.

a-a This would shift left and affect demand.

b. One hundred new fruit juice processing plants open in California.

b-a This would shift Right and affect demand

c. The price of a bottle increases significantly due to new government anti-shatter regulations.

c-a This would shift left and affect Demand

d. Researchers discover a new fruit juice processing technology that reduces production  costs.

d-a This would shift right and affect demand

e. The average age of consumers increases, and younger people drink less orange juice

e-a This would shift left and affect demand

Explanation:

A state of market where market supply is equal to market demand thus understood as "market equilibrium". The price of equilibrium is the price of a good or service, if its supply is equal to the market demand for it.

A reduction in demand will trigger the price of the equilibrium to fall; the amount delivered will decrease. An increase in supply, unmodified for all other things, will provoke the price of equilibrium to fall; the amount requested will increase. While declining supply will cause the price of the equilibrium to rise; the demanded quantity will decrease.