ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A change in the number of consumers facilitates changes in demand for apples because more buyers suggest more customers; similarly, fewer consumers signal lower demand for apples. Moreover, when there is a rise in preferences for fresh fruits, the consumption of apples will surge since the apple is a healthy fruit.

Detailed explanation-2: -A change in tastes and preferences will cause the demand curve to shift either to the right or left. For example, if new research found that eating apples increases life expectancy and reduces illness, then more apples would be purchased at each and every price causing the demand curve to shift to the right.

Detailed explanation-3: -demand for apples will increase. In a ceteris paribus assumption, and considering that apples are substitutes for oranges (because some consumers may not think apples are substitutes for oranges), the increase in the price of oranges will result in a decrease in demand shifting the demand curve to the left.

Detailed explanation-4: -Answer and Explanation: The correct answer is c) a decrease in the price of apples. When the price of apples increases, there is no shift in the demand curve.

Detailed explanation-5: -Thus, if oranges and apples are substitutes, and there is an increase in the price of oranges, this will increase the demand for apples. In the apple market, the demand curve for apples will shift upwards. As a result, the equilibrium price and the equilibrium quantity of apples will increase.