People consume more fresh fruit in the summer than during the rest of the year, yet the prices of fresh fruit are lower in the summer than in other seasons. What accounts for this?
A) Fresh fruit is not subject to the law of supply.
B) The supply of fresh fruit increases in the summer.
C) Fresh fruit is an inferior good.
D) Fresh fruit is not subject to the law of demand.

Question

Quizplus · Accepted Answer

The supply of fresh fruit increases in the summer due to the fact that it is the peak season for fruit production in many regions. With more supply, the prices of fresh fruit usually decrease. This is an example of how the law of supply and demand works in the market.

People Consume More Fresh Fruit in the Summer Than During