Consider the market for apples, which can be thought of as being competitive. Using appropriate diagrams, explain how each of the following will impact the equilibrium price and the equilibrium quantity of apples. Demand for oranges, a substitute product, increases. Income of consumers in the market increases. A drought raises the cost of apple production and at the same time, a news report is published which explains the health benefits of apple consumption

MACROECONOMICS FOR TODAY
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ISBN:9781337613057
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ChapterP2: Microeconomics Policy Issues
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  1. Consider the market for apples, which can be thought of as being competitive. Using appropriate diagrams, explain how each of the following will impact the equilibrium price and the equilibrium quantity of apples.

    1. Demand for oranges, a substitute product, increases.

    2. Income of consumers in the market increases.

    3. A drought raises the cost of apple production and at the same time, a news report is published which explains the health benefits of apple consumption

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