Final answer:
A lower pollination rate due to bee colony collapse will decrease orange supply and increase prices. Consumers may turn to alternative fruits due to the substitution effect, and have less purchasing power due to the income effect. Related industries like honey and jam preparation might also be negatively impacted.
Step-by-step explanation:
The event described, such as bee colony collapse disorder, will likely lead to a decrease in the pollination of orange crops. This decrease in pollination will result in a lower yield of oranges, thereby reducing the supply of oranges in the market. Understanding the interaction of supply and demand, prices for oranges are likely to increase when supply decreases, assuming demand remains constant.
As a consequence of higher orange prices, the substitution effect may lead consumers to purchase alternative fruits, such as apples, grapefruits, or raisins. Meanwhile, the income effect implies that consumers' purchasing power decreases when the prices of goods they buy increase.
As a result, they may end up buying fewer oranges or less overall produce. Industrially, the production cost for related industries such as the honey and jam preparation industries may rise due to the scarcity and increased price of oranges, potentially reducing their output or increasing prices of their products as well.