For each of the following changes in the market for apples, explain why supply will increase, decrease, or remain unchanged. 1. The price of peanut butter increases. 2. A new and better apple picking machine is invented. 3. The wages of apple pickers increase. 4. Some apple farmers go out of business and cut down their orchards. 5. The price of apples increases.
For each of the following changes in the market for apples, explain why supply will increase, decrease, or remain unchanged. 1. The price of peanut butter increases. 2. A new and better apple picking machine is invented. 3. The wages of apple pickers increase. 4. Some apple farmers go out of business and cut down their orchards. 5. The price of apples increases.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can you answer number 4 and 5 for me? Thank You.
Transcribed Image Text:1. In this scenario, the increased prices for peanut butter won't affect the market for apples at all as
the provided conditions are under the apple market and peanut butter is a totally different product,
therefore the supply of apples remains unchanged.
2. Now, when the new machine being updated, thus it will increase the production for apple
markets the more will be supplied in no time, therefore it will increase the supply of apples.
3. In this scenario, when the wages get hiked for the workers of apple pickers, therefore it will
affect the production and supply of apples because they will now tend to work and produce less
due to hiked wages and this DECREASES the supply of apples.
Transcribed Image Text:For each of the following changes in the market for apples, explain why supply will increase, decrease, or
remain unchanged.
1. The price of peanut butter increases.
2. A new and better apple picking machine is invented.
3. The wages of apple pickers increase.
4. Some apple farmers go out of business and cut down their orchards.
5. The price of apples increases.
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