Elasticities of supply and demand for oranges

Reference no: EM131346798

California supplies the United States with 80% of its eating oranges. In late 1998, four days of freezing temperatures in the state's Central Valley substantially damaged the orange crop. In early 1999, Food Lion, with 1,208 grocery stores mostly in the Southeast, said its prices for fresh oranges would rise by 20% to 30%, which was less than the 100% increase it had to pay for the oranges. Explain why the price to consumers did not rise by the full amount of Food Lion's price increase. What can you conclude about the elasticities of supply and demand for oranges?

Reference no: EM131346798

Questions Cloud

What is the size of the money multiplier : FIN 100- Assume a financial system has a monetary base (MB) of $25 million. The required reserves ratio is 10 percent, and no leakages are in the system. What is the size of the money multiplier (m)?

Minimize potential loss in terms of percentage of investment : Which of the following positions would ordinarily minimize potential loss in terms of percentage of investment? Assume the loss would be realized during the term of the option. The risk of shorting a stock is greater than the risk of buying a put bec..

Equation gives the eprd for a general binary system : Equation gives the EPRD for a general binary system as σ = L11X12 + 2L12X1X2 + L22X22 > 0. This quadratic form has to be positive for all positive or negative values of X1 and X2. Show that this requires that

Determine the approach that would carry the smaller risk : Determine the approach that would carry the smaller risk and the approach that would carry the bigger risk. Provide a rationale for your response. 1-2 Paragraphs.

Elasticities of supply and demand for oranges : What can you conclude about the elasticities of supply and demand for oranges?

What is the demand during lead time in units : Reliant Auto estimates the annual demand for its newest model is 60,000 units, the cost of order preparations is $55,000, the inventory carrying cost per car per year is $5,000 and the order lead-time is 1 month. Reliant keeps 500 units of safety sto..

Describe a scenario in which the size of a corporation : FIN 535- Describe a scenario in which size of a corporation is not affected by access to international opportunities. Explain why MNCs such as Coca Cola and PepsiCo, Inc., still have numerous opportunities for international expansion.

The increase in the value of the company after the loan : The Dart Company is financed entirely with equity. The company is considering a loan of $1.76 million. The loan will be repaid in equal principal installments over the next two years, and it has an interest rate of 7 percent. The company’s tax rate i..

How the multiplier leads to closing the gap : Discuss how the Multiplier leads to closing the gap between equilibrium and full employment - Question: Discuss why the tax multiplier is different. When would this multiplier be used

User Account

All Pages