1. Apples and Pears are substitutes. A freeze in Florida destroys most of the Pears crop. What would you expect to happen to the market (price and quantity) for each of the following:
(Hint: Use the demand curve and supply curve to draw conclusion with respect to the impact on the price and quantity following the freeze).

a. Apples?

b. Pears?

c. Apple juice?

I need with Graph and explanation.

2. Producer surplus is the difference between the

1. Market price and the minimum price required to induce production
2. The maximum willingness to pay of consumers and the market price
3. Quantity demanded and the quantity supplied at the market price
4. Full economic price and the minimum price required to induce production

Answer rating: 100% (QA)

A Since apples are a substitute of pears when the pears crops get frozen consumers shift ... View the full answer