Question

In the orange market, in which of the following cases will the equilibrium price necessarily increase?

Both the supply and demand curves both increase.

The price of apple juice has risen.

A bumper crop for oranges is expected.

Newspaper story of oranges causing cancer.

Answer 1

Answer
option 2
The price of apple juice has risen

Both the supply and demand curves both increase.
the increase in supply increases the quantity and decreases the price
the increase in demand increases price and quantity
in total price is indeterminate

The price of apple juice has risen.
apple is a substitute for oranges, an increase in the price of apple juice increases demand ornages for orange juice and increases price and quantity

A bumper crop for oranges is expected.
it increases supply, and the increase in supply increases the quantity and decreases the price

Newspaper story of oranges causing cancer.
it decreases demand and the increase in demand increases price and quantity