Suppose you are the manager of Sweet Aroma, a firm that specializes in air freshener. To make your air freshener, you purchase apple skins from apple juice manufacturers. If the demand for apple juice decreases, this will cause the production of apple skins to_____ and the price of apple skins to_____ .

Question

Quizplus · Accepted Answer

If the demand for apple juice decreases, apple juice manufacturers will produce less juice, leading to a decrease in the production of apple skins. As a result, the supply of apple skins will decrease, causing the price of apple skins to rise. Therefore, the production of apple skins will decrease and the price of apple skins will rise.

Suppose You Are the Manager of Sweet Aroma, a Firm