Question

Suppose the supply of apples sharply increases because of perfect weather conditions throughout the growing season. Assuming no change in demand, explain the effect on the-equilibrium price and quantity of apples.

Answer 1

A surplus.

Step-by-step explanation:

Well its simple, first to explain what is the equilibrium price which is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. A surplus exists if the quantity of a good or service supplied exceeds the quantity demanded at the current price; it causes downward pressure on price which is exactly what is happening in this case.