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    ECONOMICS
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    The answer was A 'wages of the apple pickers' I didn't understand this, I thought if the price went down this meant the suppliers could afford to cut down the price?
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    Well I'd have got that by elimination because the other answers were to do with shifts.
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    If you think about it like real life, if you're wages fall then productivity would fall causing a fall in demand.

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    (Original post by xelentoliver)
    ECONOMICS
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    The answer was A 'wages of the apple pickers' I didn't understand this, I thought if the price went down this meant the suppliers could afford to cut down the price?
    The other 3 are shifts of the demand curve. In this case the lower wages mean lower costs to the producers so a downward/rightward shift of the supply curve. So if you drew the full supply/demand picture you'd have a first supply curve intersecting such that price is OP1 and a lower one after the wages fell intersecting at OP2.
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    So basically, when supply shifts, there is a movement on the demand curve?
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    Yes, this is an important thing to understand a movement along the demand curve versus a shift of the demand curve.
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    Thank you all, it makes sense now I look back on it!
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    You're welcome!
 
 
 
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