According to a Supply and Demand Model for Apples,if the Average

question 166

Multiple Choice

According to a supply and demand model for apples,if the average household income decreases at the same time 10 apple orchards go out of business,one would expect the equilibrium

• A) price of apples to increase and the equilibrium quantity of apples in the market to decrease.
• B) price of apples to be indeterminate and the equilibrium quantity of apples in the market to increase.
• C) quantity of apples in the market to be indeterminate and the equilibrium price of apples to increase.
• D) quantity of apples in the market to decrease and the equilibrium price of apples to stay the same.
• E) quantity of apples in the market to decrease and the equilibrium price of apples to be indeterminate.

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Definitions:

Production Levels

The amount of output or goods a company produces within a specific period, indicating the scale of its production operations.

Units Per Month

The quantity of products or services that a company produces or sells in a month.

Projected Sales Units

An estimate of the quantity of products that a company plans to sell over a certain period of time.

Annual Sales

The total revenue generated from goods or services sold by a company in a fiscal year.