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Question about Supply and Demand

Economics

Originais Teachy

Supply and Demand

Hard

(Originais Teachy 2023) - Question Hard of Economics

A small town named Econville is famous for its unique apples. Last year, a severe drought hit the region, significantly reducing the apple harvest. This year, the weather has been perfect for apple growing, and the town is expecting a bumper crop. Considering the principles of supply and demand, how might these changes impact the price of apples in Econville? What other factors could potentially influence this outcome and how?
a.
The price of apples in Econville will remain the same this year despite the increase in supply.
b.
The price of apples in Econville will increase this year due to the increase in supply.
c.
The price of apples in Econville will decrease this year, but only if the demand also decreases.
d.
The price of apples in Econville will decrease this year due to the increase in supply. However, other factors such as increased demand or changes in production costs could potentially influence the outcome.
e.
The price of apples in Econville will increase this year due to the decrease in demand.

Answer:

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