ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The price of a substitute good increases
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new, more expensive government rules and regulations on apple farmers
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Fuel and shipping costs rise
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the cost of tractors and other equipment falls
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Detailed explanation-1: -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-2: -A change in the number of sellers in an industry changes the quantity available at each price and thus changes supply. An increase in the number of sellers supplying a good or service shifts the supply curve to the right; a reduction in the number of sellers shifts the supply curve to the left.
Detailed explanation-3: -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.
Detailed explanation-4: -Explanation: Since the number of apple pickers increases, there will be an increase in the supply of apples. This increase will shift the supply curve to the right which will result in an increase in the quantity demanded. Again, there will be a shift in the supply curve but not the demand curve.