Order the answer to: Florida Orange Juice is a product of Florida’s Orange Growers’

Academic Writing business-economics Order the answer to: Florida Orange Juice is a product of Florida’s Orange Growers’

business-economics

Order the answer to: Florida Orange Juice is a product of Florida’s Orange Growers’

Question Florida Orange Juice is a product of Florida’s Orange Growers’ Association. Demand and supply of the product are both highly sensitive to changes in the weather. During hot summer months, demand for orange juice and other beverages grows rapidly. On the other hand, hot dry weather has an adverse effect on supply by reducing the size of the orange crop. Demand and supply functions for Florida orange juice are as follows: QD = 4,500,000 – 1,200,000P + 2,000,000PS + 1,500Y + 100,000T (Demand) QS = 8,000,000 + 2,400,000P – 500,000PL – 80,000PK – 120,000T (Supply) Where P is the average price of Florida ($ per case), PS is the average retail price of canned soda ($ per case), Y is income (GNP in $billions), T is the average daily high temperature (degrees), PL is the average price of unskilled labor ($ per hour), and PK is the average (in percent). A. When quantity is expressed as a function of price, what are the Florida demand and supply curves if P = $11, PS = $5, Y = $12,000 billion, T = 75 degrees, PL = $6, and PK = 12.5%. B. Calculate the surplus or shortage of Florida orange juice when P = $5, $10, and $15. C. Calculate the market equilibrium price-output combination.
Subject business-economics
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