On the graph this new equilibrium is marked as EQ4. At this marked point, price has increased but quantity stays the same as established at EQ1. As stated in in the article written by King, “Labor shortage comes as Washington State’s apples are worth more”. The following statement justifies or proves the increase of price in the Washington apple market. King yet again proclaims, “There’s an abundance of apples, but not enough pickers”; hence giving way to about the same amount or quantity of apples. Despite the higher demand, buyers are buying less apples because of the higher prices. At the old price there would be a shortage, we know this because the quantity supplied is less than the quantity demanded. The new equilibrium is created when buyers become unhappy during an ongoing shortage. To solve this, the price is raised until the quantity supplied meets the quantity demanded. Note the apple orchards raise the price of apples only because the consumers demand
On the graph this new equilibrium is marked as EQ4. At this marked point, price has increased but quantity stays the same as established at EQ1. As stated in in the article written by King, “Labor shortage comes as Washington State’s apples are worth more”. The following statement justifies or proves the increase of price in the Washington apple market. King yet again proclaims, “There’s an abundance of apples, but not enough pickers”; hence giving way to about the same amount or quantity of apples. Despite the higher demand, buyers are buying less apples because of the higher prices. At the old price there would be a shortage, we know this because the quantity supplied is less than the quantity demanded. The new equilibrium is created when buyers become unhappy during an ongoing shortage. To solve this, the price is raised until the quantity supplied meets the quantity demanded. Note the apple orchards raise the price of apples only because the consumers demand