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How is a drought likely to affect the market demand for apples?

a) Increase in demand
b) Decrease in demand
c) No change in demand
d) Unpredictable change in demand

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User Tent
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1 Answer

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Final answer:

b) Decrease in demand.

A drought decreases apple production, leading to less supply and higher prices, which in turn would likely decrease market demand for apples.

Step-by-step explanation:

When a drought occurs, it affects the production of agricultural products, including apples. Since a drought decreases the resource availability, it would result in a lower quantity of apples being produced and supplied to the market. Consequently, if the demand for apples remains constant, the reduced supply due to drought conditions would likely result in a decrease in market demand as prices increase and some consumers opt out or reduce their consumption. Therefore, the correct answer to how a drought is likely to affect the market demand for apples is b) Decrease in demand.

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User Ayaan
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