Texas A&M University (TAMU) ECON202 Practice Exam 2

When a hurricane damages a significant portion of citrus fruit crops, the supply curve shifts to the left. This shift indicates a decrease in the quantity of citrus fruits available in the market at any given price. Natural disasters like hurricanes can destroy crops, leading to lower overall production levels.

As a result of reduced supply, prices are likely to increase since the demand for citrus fruits remains unchanged but the available supply is diminished. This movement of the supply curve to the left represents a reduction in supply due to the adverse impact on production capacity, which is a fundamental principle in understanding supply dynamics in economics.