If the price of apples rises by 5% and the demand for apples falls by 10%,

1. Does this represent a movement along a Demand curve or a shift in the Demand curve? Why?

2. What is the price elasticity of demand associated with these changes? Is the value you got in (b) price elastic or inelastic?

3. What effects would this price rise have on the buying behavior of consumers who normally buy apples?

Is there such a thing as price elasticity of supply? Explain briefly.

How do economic costs differ from accounting costs?