Suppose Consumer Tastes Shift Toward the Consumption of Apples

question 43

Multiple Choice

Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?

• A) There is an increase in the quantity demanded of apples and in the supply for apples.
• B) There is an increase in the demand and supply of apples.
• C) There is an increase in the demand for apples and a decrease in the supply of apples.
• D) There is a decrease in the quantity demanded of apples and an increase in the supply for apples.
• E) There is an increase in the demand for apples and an increase in the quantity supplied of apples.

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Definitions:

Long-run Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, with all adjustments made for factors affecting supply or demand over time.

Product Demand

The desire and willingness of consumers to purchase a particular product at various prices during a certain period.

Purely Competitive Firm

A business functioning in an environment with numerous purchasers and vendors, where no single entity has the power to notably affect the prices in the market.

Technological Improvement

Advances and innovations in technology that enhance efficiency, productivity, or capabilities in various sectors.