Find an article on a current economic issue that interests you in which either the effects of supply/demand is discussed or the effects of exchange rates is discussed. Attach the article to your message and summarize the significance of why you chose this particular article and how it relates to this week's topic. Recap the article and conclusion
The article I choose is: December's cold weather affected Florida Oranges by AP from the Citrus County Online Chronicle
This article discusses how the abnormal low/freezing temperatures that are affecting the Florida orange harvest can lead to price increase for drinkers. In December 2011, Florida was once again hit by abnormal freezing temperatures which in turn affected one-third of Florida’s early orange crop varieties, nearly half of the mid season crop and damaged about 13 percent of the late-season crop. These low temperature are severely impacting orange crop supply as the forecast reduced last month’s estimate by 3 million boxes to 140 million. It has also been fore-casted in this article that since the supply of oranges is being reduced, this would eventually force companies to increase juice prices. However it was also stated that this increase in price may cause a decrease in demand from consumers as they will seek cheaper juice alternatives.
I chose this article as it is very interesting to see how a few days of abnormal low/freezing temperatures can severely affect the demand and supply of a oranges and orange juice. Also it was interesting to know that 90% of Florida oranges are turned into juice and that citrus is a $9 billion dollar industry in that state. The article relates to this week's topic of supply and demand as it can be observed that shortage of oranges, can drive citrus farmers to pass increase costs to juice companies and these companies will in turn pass these increases to consumers. In addition, these added cost passed to consumers can influence the demand for orange juice, as juice...
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