18. The two graphs below show the markets for orange juice and apple juice, which are initially in equilibrium: Orange Juice Price P₁ Q1 Quantity per period D Apple Juice Price P₁ QI Quantity per period D S a) Show what will happen to the prices and quantities traded of both products if a severe frost in Florida were to seriously damage the orange crop. b) Briefly explain your answer.

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18. The two graphs below show the markets for orange juice and apple juice, which are initially in equilibrium:
Orange Juice
Price
P₁
Q1
Quantity per period
D
Apple Juice
Price
P₁
QI
Quantity per period
D
S
a) Show what will happen to the prices and quantities traded of both products if a severe frost in Florida were to
seriously damage the orange crop.
b) Briefly explain your answer.
Transcribed Image Text:18. The two graphs below show the markets for orange juice and apple juice, which are initially in equilibrium: Orange Juice Price P₁ Q1 Quantity per period D Apple Juice Price P₁ QI Quantity per period D S a) Show what will happen to the prices and quantities traded of both products if a severe frost in Florida were to seriously damage the orange crop. b) Briefly explain your answer.
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