Question

Assuming hypothetical equilibrium in Demand/Supply Model of Apples, illustrate impact of following events: A. Suppose the Doctors recommend eating Apples every morning. B. The Monsoon rains adversely affect the Apple Harvest. C. The government announces increase in Wages of workers. D. The price of petrol in the market comes down. E. Consumers Income falls during government imposed Lockdowns due to health concerns.

Answer 1

Answer:

Step 1

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered

Step 2

1)

Suppose the doctors recommend eating apples every morning as it is concerned with the health. Thus, consumers will demand more apples and the demand for apple will rise. Therefore, a rise in the demand for apples will shift the demand curve to the right and prices of apple will rise.

Step 3

2)

If the monsoon rains adversely affect the Apple harvest than less apple will be available with the farmers to sell. This implies supply of apple will...