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Answer to Question #76161 in Other Economics for Lerato

Question #76161
Using a well labeled diagram, explain how the equilibrium price and equilibrium quantity of apples will change as a result of the following:
2.1.1.A change in the wages of farm workers from R150 per day to R200 per day
2.1.2.A decrease in the price of fertilizers and a good concurrent increase in the demand for apple juice.
Expert's answer
2.1.1 A change in the wages of farm workers from R150 per day to R200 per day will cause a decrease in supply, so the equilibrium price will increase and equilibrium quantity of apples will decrease.
2.1.2 A decrease in the price of fertilizers and a concurrent increase in the demand for apple juice will cause an increase in supply and later in demand too, so the equilibrium price will fall or rice (uncertain change) and equilibrium quantity of apples will increase.

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