Assume that the market for lemonade is perfectly competitive and currently in equilibrium. lemons are key ingredients in lemonade. if the price of lemons decreases, how will the lemonade market be affected?

Supply will shift rightward, decreasing the equilibrium price of lemonade      

Explanation:

           When the amount of products demanded is equal to the amount of product supplied, then market equilibrium is achieved. It is also called aka supply-demand equilibrium. Here the quantity is equal to the equilibrium quantity and the price is equal to the equilibrium price.

          In the context, when the price of the lemon decreases which is a main ingredient in making lemonade, the supply curve have a rightward shift increasing the equilibrium quantity and thereby deceasing the equilibrium price of the lemonade.

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