Final answer:
As a result of a much bigger orange harvest, the supply curve shifts right, leading to a decrease in the equilibrium price and an increase in the equilibrium quantity of oranges (Option A).
Step-by-step explanation:
Indeed, if exceptionally good weather results in a much larger than expected orange harvest, this situation represents an increase in supply. In the context of equilibrium price and quantity, an increase in supply leads to a rightward shift of the supply curve. The larger availability of oranges contributes to a lower equilibrium price, as consumers can purchase oranges at a reduced cost. Simultaneously, the equilibrium quantity rises, reflecting the increased supply of oranges in the market.
Therefore, the correct answer is A. Equilibrium price will decrease, equilibrium quantity will increase. This illustrates a fundamental economic principle: when supply increases, holding demand constant, prices tend to decrease, leading to a higher quantity of the product being exchanged in the market.