Explain the impact of each of the following scenarios on ONLY the market for apples in Gauteng. • State whether each of the following scenarios will impact the demand or the supply curves for apples. • State whether the impact will shift the curve or cause a movement along the curve. • If it is a shift, state the direction of the shift and motivate your answer. Q.2.1.1Eating apples is considered unhealthy, ceteris paribus. Q.2.1.2The number of firms selling apples in Gauteng has decreased. Q.2.1.3The price of bananas (a substitute in consumption) has increased. Q.2.1.4The price of input costs has increased, ceteris paribus.
Explain the impact of each of the following scenarios on ONLY the market for apples in Gauteng.
• State whether each of the following scenarios will impact the
• State whether the impact will shift the curve or cause a movement along the curve.
• If it is a shift, state the direction of the shift and motivate your answer.
Q.2.1.1Eating apples is considered unhealthy, ceteris paribus.
Q.2.1.2The number of firms selling apples in Gauteng has decreased.
Q.2.1.3The
Q.2.1.4The price of input costs has increased, ceteris paribus.
Q.2.1.5Household incomes have increased. Assume that apples are a normal good.
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