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Suppose there is an early freeze in California that reduces the size of the lemon crop. Explain what happens to con-sumer surplus in the market for lemonade.
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Therefore the supply curve will shift upwards implying decreasing supply at every price level.
Illustrate your answers with diagrams. Making lemonade requires water and lemon juice in the ratio of 3 cups of water to 2 cups of lemon juice. Economics Principles of Economics MindTap Course List An early freeze in California sours the lemon crop. A decrease in the supply of lemons will shift. Solution Download An early freeze in California sours the lemon crop Explain. Illustrate the effect the price change of lemons has on the market for lemonade.
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