Market Dynamics and Equilibrium

The video explores how changes in market factors affect supply and demand, impacting equilibrium price and quantity. It examines scenarios like the introduction of disease-resistant apples, health studies on apples, advertising campaigns for pear cider, and unionization of apple pickers. Each scenario demonstrates shifts in supply and demand curves, influencing market equilibrium.

What is the primary focus of the video regarding market dynamics?

• The nutritional benefits of apples

• How to grow disease-resistant apples

• The impact of market changes on supply and demand

• The history of apple farming

What happens to the supply curve when a new disease-resistant apple is invented?

• It becomes vertical

• It shifts to the right

• It remains unchanged

• It shifts to the left

How does the invention of disease-resistant apples affect the equilibrium price?

• The price decreases

• The price increases

• The price becomes unpredictable

• The price remains the same

What is the likely consumer reaction to a study showing apples prevent cancer?

• Switch to other fruits

• Decrease in apple demand

• Increase in apple demand

• No change in apple demand

How does the demand curve shift when consumer preferences for apples increase?

• It shifts to the right

• It shifts to the left

• It becomes steeper

• It becomes flatter

What is the effect of the pear cider advertising campaign on apple demand?

• Apple demand increases

• Apple demand remains unchanged

• Apple demand decreases

• Apple demand becomes volatile

In the scenario where both apple demand and supply decrease, what is certain about the quantity?

• Quantity increases

• Quantity decreases

• Quantity remains the same

• Quantity becomes unpredictable

What happens to the equilibrium price when apple pickers demand higher wages?

• The price remains unchanged

• The price becomes volatile

• The price increases

• The price decreases

How does an increase in production costs affect the supply curve?

• It shifts to the right

• It shifts to the left

• It becomes flatter

• It becomes steeper

What is the overall impact on equilibrium quantity when supply decreases due to higher wages?

• Quantity remains the same

• Quantity becomes unpredictable

• Quantity decreases

• Quantity increases