Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?

Question

Quizplus · Accepted Answer

When there is a shift in consumer tastes towards the consumption of apples, it means that more people want to buy apples at every given price. This leads to an increase in demand for apples. As a result, producers will increase the quantity they supply to the market to take advantage of the higher price they can charge for each unit sold. This leads to an increase in the quantity supplied of apples. Therefore, the best choice is E, an increase in the demand for apples and an increase in the quantity supplied of apples.

Suppose Consumer Tastes Shift Toward the Consumption of Apples