(1) Explain each of the following statements using supply-and-demand diagrams.

(A) "When a cold snap hits Florida, the price

of orange juice rises in supermarkets throughout

the country."

(B) "When the weather turns warm in New England

every summer, the price of hotel rooms in

Caribbean resorts plummets."

(c) "When a war breaks out in the Middle East, the

price of gasoline rises and the price of a used Cadillac falls."