Orange juice will soon be a luxury
Read the article Orange juice will soon be 'luxury' and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.
Define the terms:
- luxury item
- commodity prices
Using supply and demand diagrams as appropriate, explain the impact of the freezing weather in Florida and China on the world price of oranges.
With the use of supporting diagrams, analyse the impact of non-price determinants on the supply of, and demand for, orange juice.
To what extent are retailers able to absorb price increases from their suppliers, rather than pass them onto consumers?