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


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

Work Step by Step

Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.