Mitch,
Actually I disagree with the statement “If
growers do not produce as many oranges as people would like to buy,
prices and profits rise.” This may be picky, but:
Yes, prices definitely will rise, but profits may or may not
rise. For example, it certainly is possible that growers will
make less profit overall if production is decreased, even if profit per
unit does increase.
Even the assumption that profit per unit will increase is questionable–it depends on costs.
