Ocean Spray, an agricultural cooperative association for cranberries growers in Massachusetts, needs to predict what will happen to the price and output of cranberries under the conditions below. What are your predictions? For each part, identify if the event is a supply or demand related and relate to the specific determinant of supply/demand. Please sketch a graph showing the appropriate demand and supply curves and label the changes to the rationing and guiding (allocating) functions.

a. A major freeze in December 2017 destroys a large number of cranberry fields in the major producing regions of Wisconsin and Massachusetts.

b. The American Nephrology Association announces that drinking cranberry juice can reduce the risk associated with kidney stones /failure among the elderly population.