A recent hurricane destroyed half of the orange crop. Consumers are responding to an increase in the price of oranges by buying more apples. This change is expected to increase the price and quantity of apples sold. In terms of basic supply and demand analysis, there has been a ___________________________. a. shift in the demand curve for both oranges and apples b. movement along the demand curve for both oranges and apples c. shift in the demand curve for oranges and a movement along the demand curve for apples d. movement along the demand curve for oranges and a shift in the demand curve for apples

Respuesta :

Answer:

D) Movement along the demand curve for oranges and a shift in the demand curve for apples

Explanation:

From the question, there was an increase in the price of oranges due to the destruction of a large number of orange crops by the hurricane. This change in price of oranges resulted to an increase in demand for apples.  Therefore, this event has resulted to a movement along the demand curve for oranges and a shift in the demand curve for apples. The movement along the demand curve for oranges occurred because the price of oranges sold changed and the quantity demanded changed also. This is in line with the original demand relationship. In other words, a movement usually occurs when there is a  change in the quantity demanded of a particular good as a result of a change in its price, and vice versa.

The shift in the demand curve for apples is as a result of a fall in the demand for oranges and an increase in the demand for apple therefore the suppliers tend to supply more of apples in the market.