What happens to the profit earned by apple producers and the wage earned by apple pickers when the price of apples rises?

Question

Quizplus · Accepted Answer

When the price of apples rises, the demand for apples remains relatively constant, meaning that producers can charge more for their product without fearing a decrease in sales. This leads to an increase in profits for apple producers. The increased profitability of apple production creates an incentive for more growers to enter the market, increasing the supply of apples in the long run, which generally leads to a decrease in the price of apples.

Since the demand for apples is relatively constant, the additional revenue generated by a price increase is unlikely to be offset by decreased employment or wages for apple pickers. Instead, the higher demand for apples means that producers will need to hire more workers to keep up with production, leading to wage growth for apple pickers. Therefore, both profit and wages should rise when the price of apples increases.

What Happens to the Profit Earned by Apple Producers and the Wage