Question

in the market place for orange juice we discover that the price of orange juice has increased, yet the quantity of orange juice has decreased. The situation can be explained by a

Answer 1

This results from a shift in the supply curve. For example, there is a severe drought that decreases the production of oranges, and therefore, the production of orange juice. The supply curve of orange juice will shift to the left, decreasing the quantity supplied at every price level. This generally increases the price of orange juice and decreases the quantity.