Do the following statements indicate less demand for cherries? a. Lower incomes have hurt purchases in the cherry market. b. Falling peach prices have cut into cherry growers sales. c. Higher cherry prices across the province have caused many consumers to shy away from the market.
Ans
Due to decrease in income of the consumers the quantity purchased
of cherries decreases, this results in decrease of the demand of
cherries in the market. The fall in income of the consumers will
cause a decrease in their willingness to purchase cherries, as a
consequence of which the demand for cherries will fall.
Due to decrease in prices of peach, the demand for peach will
increase. As peach is the substitute of cherry, so the demand for
cherries will fall, resulting in decreasing sales of the growers of
cherries.
If there is an increase in the prices of the cherries across an
area, which causes many consumers to purchase less of the cherries,
then the demand for cherries shall decrease.
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