ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -the quantity of apples demanded will decrease, ceteris paribus. According to the ceteris paribus, the price and quantity demanded are inversely proportional to each other. When the price of apples increases, the quantity demanded of apples will tend to fall in the market.

Detailed explanation-2: -The cost of producing apple pie increases with an increase in apple price. It’s because apples are used as an input in the production of apple pies. The increase in the cost of apples directly increases the cost of producing apple pies which discourages supply.

Detailed explanation-3: -Therefore, the rise in the price of iPhones reduces the demand of iPhones and eventually, iPhone cases. In other words, the demand curve of iPhone cases shifts to left due to the increase of iPhones price.

Detailed explanation-4: -Answer: False Thus, a change in the price of apples doesn’t affect supply but will affect quantity supplied. Visually this is seen as a movement along the supply curve, not a shift of the supply curve.