The following diagram shows the demand for and supply of apples. The supply and demand curves are initially given by S₀and D₀. The market is in equilibrium at point x. There is then a rise in the price of pears and oranges and an increase in the costs of transporting fresh fruit. As a result either or both the demand and supply curves shift to one of the new positions shown in the diagram. What will be the equilibrium position on the diagram?

Question

Quizplus · Accepted Answer

The Answer of The following diagram shows the demand for and supply of apples. The supply and demand curves are initially given by S₀and D₀. The market is in equilibrium at point x. There is then a rise in the price of pears and oranges and an increase in the costs of transporting fresh fruit. As a result either or both the demand and supply curves shift to one of the new positions shown in the diagram. What will be the equilibrium position on the diagram?

The Following Diagram Shows the Demand for and Supply of Apples