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When a cold snap hits Florida the price of orange juice rises in supermarkets throughout the country draw supply and demand diagram?
When a cold snap hits Florida, the supply of Oranges decreases due to crop damage, leading to a leftward shift in the supply curve in the Orange Juice market. As the supply diminishes, the price of orange juice rises, illustrated by a movement along the demand curve as consumers respond to higher prices. Consequently, the new equilibrium price is established at a higher point, reflecting reduced availability and increased demand for orange juice. In a supply and demand diagram, the initial and new equilibrium points would clearly show the impact of the cold snap on price and quantity.
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