Suppose That a New Advertising Campaign Extolling the Virtues of Apple

Suppose that a new advertising campaign extolling the virtues of apple juice is successful,and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?

A) The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice falls.
B) The equilibrium price of apple juice might rise or fall and the equilibrium quantity of apple juice rises.
C) The equilibrium price of apple juice rises and the equilibrium quantity of apple juice might rise or fall.
D) The equilibrium price of apple juice falls and the equilibrium quantity of apple juice might rise or fall.

Correct Answer:

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