Answer:
Increase; decrease.
Step-by-step explanation:
The solution to this question is just the basic knowledge of the law of demand which states that all other things being equal, as the price of a particular goods increases, the purchasing quantity of that goods decreases that is to say at lesser price goods will be bought in large quantities than at larger price.
From the question; ''...The government increases income taxes on households, and increases business taxes on apple farmers..." which will cause an INCREASE in the price of the apples and DECREASE in the quantity of apples exchanged.
When buyers and sellers meet in the market and the buyers notice a hike in in price of the apples, and their income does not change, the buyers tends to buy less of the apples and look for alternative with less price.