Orange juice and apple juice are substitutes. Bad weather that sharply reduced the orange harvest would decrease consumer surplus in the market for orange juice but increase producer surplus in the market for apple juice O increase consumer surplus in the market for orange juice and increase producer surplus in the market for apple juice decrease consumer surplus in the market for orange juice and decrease producer surplus in the market for apple juice. increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice
Orange juice and apple juice are substitutes. Bad weather that sharply reduced the orange harvest would decrease consumer surplus in the market for orange juice but increase producer surplus in the market for apple juice O increase consumer surplus in the market for orange juice and increase producer surplus in the market for apple juice decrease consumer surplus in the market for orange juice and decrease producer surplus in the market for apple juice. increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice
Chapter4: Demand, Supply, And Markets
Section: Chapter Questions
Problem 1.1P
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Can you help me with this? Can you explain how to factor in consumer producer surplus is with substitute and complement goods? I thought that if bad weather reduce the orange harvest that would mean that supply would go down and that will increase the price of oranges.
Can you explain this and also graph for me? I’m a visual learner. 
Transcribed Image Text:Orange juice and apple juice are substitutes. Bad weather that sharply reduced the orange
harvest would
decrease consumer surplus in the market for orange juice but increase producer surplus in the market for
apple juice
O increase consumer surplus in the market for orange juice and increase producer surplus in the market for
apple juice
decrease consumer surplus in the market for orange juice and decrease producer surplus in the market for
apple juice.
O increase consumer surplus in the market for orange juice but decrease producer surplus in the market for
apple juice
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