A severe drought has damaged the Washington state apple crop. As a result apple producers will pay more for apples and ultimately consumers will have to pay more for apple juice at the grocery store. The impact on the market for apple juice will cause which of the following to shift to the left?

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2 January, 19:32

A severe drought has damaged the Washington state apple crop. As a result apple producers will pay more for apples and ultimately consumers will have to pay more for apple juice at the grocery store. The impact on the market for apple juice will cause which of the following to shift to the left?

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Answers (1)

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Newt · Answer 1

The supply cure

Explanation:

When the price of inputs (in this case apples) increases, the production costs also increase. That will lead to higher prices along the entire supply curve. That is why the supply curve will shift to the left in the same proportion as the costs of producing apple juice increases.