Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 3 - Demand, Supply, and Market Equilibrium - Appendix - Disscussion Questions: 4

Answer

With reference to the diagram, when the supply of apples increases, there is a rightward shift in the demand curve from S0 to S1, and as a result, there is a downward pressure on price, toward a new equilibrium price of P0, which is lower than the previous equilibrium price of P1, and an increase in quantity demanded from Q0 to Q1. There is a change in quantity demanded due to a changes in price, where price decreased from P0 to P1, and there was a downward shift along the demand curve, hence a change in quantity demanded
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