A recent hurricane destroys half the orange crop. Assuming that the demand for oranges is relatively inelastic, the short impact. What would happen to the:

1. Demand would REMAIN THE SAME.

Demand would not change as we are told that demand is relatively inelastic.

2. Supply of oranges will DECREASE.

The hurricane destroyed half of the orange crop. This means that there will be less oranges to sell in the market so the supply will reduce.

3. Market Price of Oranges will RISE

With the supply decreasing and the demand remaining the same, the supply curve will shift left and the new equilibrium will be a higher market price to account for the scarcity.

4. Market Quantity will DECREASE

As the supply to the market decrease, the Quantity available in the market will decrease as well.

5. Total Revenue will RISE.

When market prices rise for a commodity with inelastic demand, total revenue will invariably rise.

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