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. 1) The price of input costs has increased, ceteris paribus. 2) Household incomes have increased. Assume that apples are a normal good.

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. 1) The price of input costs has increased, ceteris paribus. 2) Household incomes have increased. Assume that apples are a normal good.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 26QP

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