If the price per bushel of apples increased from $7.00 to $8.00 because of a poor harvest, the

Question

Quizplus · Accepted Answer

When the price of a good increases, the quantity demanded typically decreases because consumers are less willing to buy the good at the higher price. This is a movement along the demand curve, not a shift in the demand curve itself. Therefore, the correct answer is that the quantity of apples demanded decreases. The demand for apples does not decrease; rather, it is the quantity demanded at the new higher price that is lower. The quantity of apples supplied would likely increase or stay the same at the higher price, not decrease, so option C is incorrect.

If the Price Per Bushel of Apples Increased from $7