Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?
A) The demand would increase, increasing both equilibrium price and quantity.
B) The supply would increase, decreasing equilibrium price and increasing equilibrium quantity.
C) The demand would decrease, decreasing both equilibrium price and quantity.
D) The supply would decrease, increasing equilibrium price and decreasing equilibrium quantity.

Question

Quizplus · Accepted Answer

An unusually large crop of apples would result in an increase in the supply of apples in the market, therefore increasing the quantity of apples supplied and decreasing the equilibrium price. This is because there would be a surplus of apples in the market, leading to sellers needing to lower the price to encourage buyers to purchase the excess supply.

Suppose There Is an Unusually Large Crop of Apples This