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

question 131

Multiple Choice

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

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

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Definitions:

Poverty Rate

The percentage of the population with incomes below the poverty threshold.

Poverty Threshold

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country.

Social Insurance

Government-provided insurance programs designed to protect individuals from economic risks and insecurities, such as unemployment, old age, or disability.

Food Stamps

A government assistance program that provides low-income families with funds to purchase groceries, aiming to reduce hunger and improve nutrition.