Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market wage rates necessary to get their oranges picked. Some are turning to $100,000 to $300,000 mechanical harvesters known as "trunk, shake, and catch" pickers, which vigorously shake oranges from trees. If widely adopted, this will O decrease the supply of oranges, implying the output effect is greater than the substitution effect. decrease the demand for human orange pickers, implying the substitution effect is greater than the output effect. O increase the demand for oranges, implying the output effect is greater than the substitution effect. O decrease the demand for human orange pickers, implying the substitution effect is less than the output effect.

Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market wage rates necessary to get their oranges picked. Some are turning to $100,000 to $300,000 mechanical harvesters known as "trunk, shake, and catch" pickers, which vigorously shake oranges from trees. If widely adopted, this will O decrease the supply of oranges, implying the output effect is greater than the substitution effect. decrease the demand for human orange pickers, implying the substitution effect is greater than the output effect. O increase the demand for oranges, implying the output effect is greater than the substitution effect. O decrease the demand for human orange pickers, implying the substitution effect is less than the output effect.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 1E: For each of the determinants of demand in Equation 2.1, identify an example illustrating the effect...

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