Purchase Solution

Managerial Economics: Citrus speculation for orange growers

Not what you're looking for?

Ask Custom Question

Managerial Economics

(1) Citrus speculation and forecasting, Inc, has been hired by a private consortium of orange growers to predict what will happen to the price and output of oranges under the conditions below. What are your predictions? For each part show a graph for the appropriate demand supply analysis.

(a) Major freeze destroys a large number of the orange trees in Florida.
(b) The scientists in the agricultural extension service of the University of Florida discover a way to double the number of oranges produced by each orange tree.
(c) The American Medical association announces that drinking orange juice can reduce the risk of heart attack.
(d) The price of grapefruit falls

(2) Rising jet fuel prices recently led most major U.S. airlines to raise fares by approximately in percent. Explain how this substantial increase in airfares would affect the following.

(a) The demand for air travel.
(b) The demand for hotels.
(c) The demand for rental cars.
(d) The supply of overnight mail.

Purchase this Solution
Solution Summary

This solution shows how certain conditions affect the level of output and the prices of a product. This solution will provide the students with great understanding of the economic concept pertaining to demand and supply. Each condition has a demand and supply graph to illustrate the impacts.

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Motivation

This tests some key elements of major motivation theories.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

View More Free Quizzes
Related BrainMass Solutions

  • Predicting Orange Price and Output Under New Conditions

    290785 Citrus Speculation and Forecasting, Inc., has been hired by a private consortium of orange growers.

  • Supply and Demand Analyses and Graphing

    This examples given were based on Citrus Speculation and Forecasting, Inc., an orange grower.

  • Firms in Competitive Markets

    As per my past experience, I never saw any advertising for individual orange growers.

  • Competitive Markets

    Among other things, the site is clearly an advertisement for the state's orange industry. Have you ever seen or do you expect to see advertising for individual orange growers? Why? What characteristics of the good make the market competitive?

  • Destruction of orange trees

    409456 Applied Problem Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are you predictions?

  • Demand and Supply Analysis

    367432 Managerial Economics Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below.

  • The Supply and Demand Dynamics

    396728 The Supply and Demand Dynamics Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below.

  • Supply and Demand with Graphical Illustrations

    423339 Supply and Demand with Graphical Illustrations Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below

  • Exchange rate Calculations and Exchange Rate Risk

    If the firm wants a 50 percent markup on the product, what should the orange juice sell for in Japan? Now, assume Citrus Products begins producing the same liter of orange juice in Japan.

View More Related Solutions