Market: Orange Juice Concentrate
Florida is the largest producer of oranges in the United States. When Hurricane Irma tore through the state, many of their orange crops were destroyed. As a result, the price of frozen orange concentrate rose to £1,600 per tonne—a 25 per cent increase. The supply determinant associated with this increase in price is the cost of factors of production. This is because the destruction of orange crops caused the price of oranges to increase, leading to an increase in the cost of producing orange juice concentrate.
As show on the graph below, the destruction of orange crops caused the supply curve to shift to the left. This resulted in the equilibrium price of orange juice concentrate to increase and equilibrium quantity to decrease.