Industry Analyst: This summer is expected to be particularly hot and dry in the major orange-growing regions of Florida, the state accounting for the largest share of orange production in the United States. While hot and dry weather usually leads to a substantial drop in the yield of oranges, my projections indicate that the revenues of Florida orange producers will not be substantially affected by these unfavorable conditions. Which of the following statements, if true, would support the claim of the Industry Analyst?
A: This summer, Florida orange producers will employ a large number of migrant workers, a strategy that will substantially decrease their labor costs.
B: The hot weather is likely to increase the revenues of companies engaged in tourism and recreation that comprise the largest portion of the state economy.
C: Because of the hot and dry weather, the costs of irrigation for Florida orange growers will be nearly 30% higher this summer.
D: The decline in the supply of oranges caused by the unfavorable weather will result in a substantial increase in their market price.
Choose A, B, C or D as your solution.
D