Question

3.02b homework
for each of the following changes in the market for apples, explain why supply will incre
unchanged.

1. the price of peanut butter increases.
2. a new and better apple picking machine is invented.
3. the wages of apple pickers increase.
4. some apple farmers go out of business and cut down their orchards.
5. the price of apples increases.

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assignment.

Explanation:

1. The price of peanut butter increases.

Peanut butter and apples are not directly related in terms of production inputs or technology for apples. So the supply of apples is unchanged as this price change doesn't affect apple production factors (like costs, technology, number of sellers, or apple - related resource availability).

A better apple - picking machine improves the technology used in apple production. Improved technology allows producers to produce more apples at each price level. So the supply of apples will increase because the new machine increases the efficiency of apple picking, reducing production costs (in terms of time and labor for picking) and enabling more apples to be supplied.

Apple pickers' wages are a production cost for apples. When production costs increase (as wages are part of the cost of getting apples from the orchard to the market), producers will be willing to supply fewer apples at each price level. So the supply of apples will decrease.

Answer:

Supply of apples is unchanged.

2. A new and better apple picking machine is invented.