Suppose that many cities begin to pass taxes on carbonated sodas, while at the same time...

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Suppose that many cities begin to pass taxes on carbonated sodas, while at the same time scientists discover a cure for citrus greening, which is reducing orange crops in Florida and Brazil. a. Can we use this information to be certain whether the equilibrium price of orange juice will increase or decrease? b. Can we use this information to be certain whether the equilibrium quantity of orange juice will increase or decrease? Use a demand and supply graph to illustrate your answers to the questions above. 1.) Using the line drawing tool, graph the effect of a tax on carbonated sodas in the market for orange juice by drawing a new demand curve. Label your line 'D2.' 2.) Using the line drawing tool, graph the effect of a cure for citrus greening in the market for orange juice by drawing a new supply curve. Label your line 'S2.' 3.) Using the point drawing tool, indicate the new market equilibrium. Label your point 'e2.' Price of orange juice e1 P- D, Q, Quantity of orange juice Suppose that many cities begin to pass taxes on carbonated sodas, while at the same time scientists discover a cure for citrus greening, which is reducing orange crops in Florida and Brazil. a. Can we use this information to be certain whether the equilibrium price of orange juice will increase or decrease? b. Can we use this information to be certain whether the equilibrium quantity of orange juice will increase or decrease? Use a demand and supply graph to illustrate your answers to the questions above. 1.) Using the line drawing tool, graph the effect of a tax on carbonated sodas in the market for orange juice by drawing a new demand curve. Label your line 'D2.' 2.) Using the line drawing tool, graph the effect of a cure for citrus greening in the market for orange juice by drawing a new supply curve. Label your line 'S2.' 3.) Using the point drawing tool, indicate the new market equilibrium. Label your point 'e2.' Price of orange juice e1 P- D, Q, Quantity of orange juice

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a As illustrated by figure1 presented in the attached document below D1 represents the initial or original demand curve for orange juice and S1 denote... View the full answer