Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased demand and decreased supply will raise the price of oranges.
B
Increased supply and decreased demand will lower the price of oranges.
C
Decreased demand and decreased supply will keep the price of oranges stable.
D
Increased demand with stable supply will lower the price of oranges.
Understanding the Answer
Let's break down why this is correct
Answer
The changes in the market for oranges would be influenced by both an increase in demand and a decrease in supply. As the health study shows that oranges can boost immunity, more people want to buy them, which raises demand. However, because severe weather has damaged orange crops, there are fewer oranges available for sale, which reduces supply. When demand goes up while supply goes down, prices typically rise because people are willing to pay more for the limited oranges available. For example, if normally a bag of oranges costs $3 but now there are fewer oranges due to the weather, stores might raise the price to $5 to reflect the higher demand and lower supply.
Detailed Explanation
When more people want oranges but there are fewer available, prices go up. Other options are incorrect because This option suggests that more oranges are available when demand is high, which is not true here; This option assumes that demand is low, but the study shows that demand is actually high.
Key Concepts
Supply and Demand
Market Equilibrium
Price Elasticity
Topic
Supply and Demand Analysis
Difficulty
easy level question
Cognitive Level
understand
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