Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 3 - Appendix - Appendix Questions - Page 73: 4

Answer

Equilibrium price of apples will decrease and quantity demanded will increase.

Work Step by Step

As a result of an increase in supply due to favorable weather conditions, we can expect and outward shift of the supply curve. As such, the equilibrium price of apples will decrease. Likewise, since the market is in equilibrium, the increase in supply will be matched with a similar increase in demand along the demand curve.
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