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Assume apples and pears are substitutes. Ceteris Paribus, at the same time as the price of apples increased by 50 percent, the New Zealand government
Assume apples and pears are substitutes. Ceteris Paribus, at the same time as the price of apples increased by 50 percent, the New Zealand government also imposed an additional tax on pear growers. Use demand and supply analysis, graphically represent and explain the impact of these scenarios on the market price and quantity in the market for pears. ( hint: there is is more than one possibility to changes in price and quantity)
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