The density can be calculated by dividing the total number of oranges by the volume of the crate. The second option is the correct one.
As far as the population of something is concerned, the density is the ratio of the total population and the area covered by the population.
In this case, the density would be the ratio of the total number of oranges and the total area or volume the oranges occupy in the crate.
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Density = volume of crate over number of oranges
Density = number of oranges over volume of crate
Volume of shelf = density over number of oranges
Number of books = density over volume of crate