Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ?
Correct answer: E. There is an increase in the demand for apples and an increase in the quantity supplied of 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 a decrease in the quantity demanded of apples and an increase in the supply for apples
- E. There is an increase in the demand for apples and an increase in the quantity supplied of apples.
Explanation
A shift in tastes toward apples shifts the demand curve rightward. The resulting higher equilibrium price causes an increase in quantity supplied, which is movement along the existing supply curve, not an increase in supply itself.
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