Which of the following would cause the equilibrium price of apple juice to decrease and the equilibrium quantity of apple juice to increase?
A)a decrease in the price of apples
B)an increase in the price of apples
C)an increase in the price of orange juice,a substitute for apple juice
D)a decrease in the price of granola bars,a complement for apple juice

Question

Quizplus · Accepted Answer

A decrease in the price of apples will decrease the production cost of apple juice and will increase its supply. This will cause a shift in the supply curve to the right, resulting in a lower equilibrium price and a higher equilibrium quantity of apple juice.

Which of the Following Would Cause the Equilibrium Price of Apple