Indicate how an increase in tastes for apples will affect the equilibrium price and the equilibrium quantity in the market for applesa. increase; increaseb. increase; decreasec. decrease; decreased. decrease; increase

Option (a) is correct.

Explanation:

Tastes and preferences are the determinants of demand. Any change in the tastes and preferences will lead to shift the demand curve of a market. Therefore, an increase in the tastes for apples means that demand is favorable for the apple market, as a result demand curve shifts rightwards.

Hence, both equilibrium price and equilibrium quantity in the market for apples increases.

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

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