Suppose consumer tastes shift toward the consumption of apples. Which of the following statements isan accurate description of the impact of this event on the market for apples?(a) There is an increase in the quantity demanded of apples and in the supply for apples(b) There is an increase in the demand and supply of apples.(c) There is an increase in the demand for apples and a decrease in the supply of apples.(d) There is an increase in the demand for apples and an increase in the quantity supplied.
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option C IS CORRECT OPTION
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Option (c) is correct.
Explanation:
Initially, the supply is constant and lets assume demand is also constant the supply satisfies the demand of apples. But, later as the demand increases, more quantity is required in the market and since the supply is same, it is said to decrease. So, in this case, There is an increase in the demand for apples and a decrease in the supply of apples.
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