Suppose There Is an Unusually Large Crop of Apples This

question 45

Multiple Choice

Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?

• A) The demand would increase, increasing both equilibrium price and quantity.
• B) The supply would increase, decreasing equilibrium price and increasing equilibrium quantity.
• C) The demand would decrease, decreasing both equilibrium price and quantity.
• D) The supply would decrease, increasing equilibrium price and decreasing equilibrium quantity.