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 increases, this will cause the production of apple skins to_____ and the price of apple skins to_____ .

Question

Quizplus · Accepted Answer

An increase in the demand for apple juice will cause an increase in the production of apple juice, which will in turn increase the production of apple skins. This increase in supply will cause the price of apple skins to fall. Therefore, the correct option is C - increase; fall.

Suppose You Are the Manager of Sweet Aroma, a Firm