Cross elasticity of demand-supply and demand


Problem: If hurricanes destroy a large percentage of orange trees in Florida, the equilibrium price of oranges in California will __________ because Florida and California oranges are __________ and have a _________ cross elasticity of demand.

  • rise, substitutes, positive
  • rise, substitutes, negative
  • fall, substitutes, positive
  • fall, complements, negative

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Microeconomics: Cross elasticity of demand-supply and demand
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