Explain each of the following statements using supply-and-demand diagrams. a. When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country. b. When the weather turns warm in New England every summer, the price of hotel rooms in Caribbean resorts plummets. c. When a war breaks out in the Middle East, the price of gasoline rises, and the price of a used Cadillac falls.
Step 1 of 4
Market equilibrium implies the state in which the market is supposed to lie at the static point due to the interaction of market demand and market supply.