For each of the following changes in the market for apples, explain why demand will increase, decrease, or remain unchanged. 1. The price of peanut butter (a complement) increases. 2. Consumer incomes increase (and apples are a normal good). 3. It is confirmed scientifically that an apple a day DOES keep the doctor away.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
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For each of the following changes in the market for apples, explain why demand will increase, decrease, or remain unchanged.
1. The price of peanut butter (a complement) increases.
2. Consumer incomes increase (and apples are a normal good).
3. It is confirmed scientifically that an apple a day DOES keep the doctor away.
4. The price of apples decreases.
5. A disease affecting apple trees causes people to expect that there will be no apples next year.
Transcribed Image Text:For each of the following changes in the market for apples, explain why demand will increase, decrease, or remain unchanged. 1. The price of peanut butter (a complement) increases. 2. Consumer incomes increase (and apples are a normal good). 3. It is confirmed scientifically that an apple a day DOES keep the doctor away. 4. The price of apples decreases. 5. A disease affecting apple trees causes people to expect that there will be no apples next year.
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