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Orange Juice and Apple Juice Are Substitutes

Question 103

Multiple Choice

Orange juice and apple juice are substitutes.Suppose bad weather sharply reduced the orange harvest.What would the impact be


A) increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice
B) increase consumer surplus in the market for orange juice and increase producer surplus in the market for apple juice
C) decrease consumer surplus in the market for orange juice but increase producer surplus in the market for apple juice
D) decrease consumer surplus in the market for orange juice and decrease producer surplus in the market for apple juice

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