Answer to Question #77336 in Economics for Sisanda Zondi

Question

2.1 Using well labelled diagrams, explain how the equilibrium price and equilibrium quantity of apples will change as a result of the following;
2.1.1 An increase in the supply of farm workers per day and how it will affect the market of apples.

Answer 1

2.1.1 An increase in the supply of farm workers per day will decrease their wages, so the costs of production will decrease, that's why supply of apples will increase, equilibrium price will decrease, equilibrium quantity will increase.