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CFA Level 1
Economics

Impact of Increased Demand on Equilibrium Price and Quantity

Very Easy Microeconomics Demand And Supply Analysis

In a small town, the market for apples experiences a shift in demand due to a health trend promoting increased fruit consumption. As a result, more people want to buy apples at the same price levels they were previously purchasing. This scenario sets up a fundamental understanding of how demand affects the market equilibrium.

Given this context, what is the likely impact on the equilibrium price and quantity of apples in the market?

Hint

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