In Connecticut, the apple market is perfectly competitive.Suppose that consumer tastes change so that the market demand for apples increases.In that case, the demand curves faced by individual firms will

Question

Quizplus · Accepted Answer

When the market demand for apples increases, the demand curve faced by individual firms will shift upward, as there is now a greater quantity demanded at each price. This does not cause a change in elasticity, and there is no reason for the demand curve to shift leftward or downward. Therefore, the correct answer is C.

In Connecticut, the Apple Market Is Perfectly Competitive