Business, 17.03.2020 22:14 leeahnnfoster
The price of apples used to make apple pies has decreased. At the same time, people expect the price of apple pies increase significantly in the future. Given these two effects, what will happen to the current equilibrium quantity and price of apple pies?
a.
Equilibrium quantity will increase; the effect on price is ambiguous.
b.
Equilibrium price will increase; the effect on quantity is ambiguous.
c.
Equilibrium price will decrease; the effect on quantity is ambiguous.
d.
Equilibrium quantity will decrease, equilibrium price will increase.
Answers: 1
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