Assignment task: Answer each problem fully and use graphs to help explain the answers. There is not always one correct answer. The quality of your answer depends on the strength of your explanation and on your ability to apply economic concepts to these problems.
Please drove the graphs also
1. Assume that the market for orange juice is perfectly competitive. How would each of the following events affect the equilibrium price and quantity for the orange juice industry?
How would the events affect Orange Industries, a grower in Florida? Use assumptions, as necessary, to answer this question.
A. A hurricane wipes out a part of the orange crop in Florida, but does not affect Orange Industries;
B. A decision by international orange growers to increase their production of orange juice for export to the United States;
C. A technological advance discovered by Orange Industries that lowers average cost and is not available to other firms;