Assume the market for apple pie is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the market if there is simultaneously an increase in the price of apples and a decrease in the price vanilla ice cream.
c) Graphically illustrate the impact on the diagram you prepared for part (a).

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The Answer of Assume the market for apple pie is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the market if there is simultaneously an increase in the price of apples and a decrease in the price vanilla ice cream.
c) Graphically illustrate the impact on the diagram you prepared for part (a).

Assume the Market for Apple Pie Is Initially in Equilibrium