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answers:

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For a cloud instance that runs Apache, I'm guessing the cloud has an IP address.

One of the benefits of using a cloud is scaling, but I'm not sure how that scaling happens. I thought that new instances are created automatically to accommodate rise in traffic. IF that's correct (correct me if I'm wrong), then does that mean that each new instance would have its own IP or what? because if that's the case, it would complicate matters a lot when pointing a domain to a cloud.

+2  A: 

The cloud sits behind a load balancer which is able to redirect traffic to different spawned instances of Apache servers. In that since you can grow and shrink to any number of servers based on how much traffic you are receiving.

David Young
So it's still a single IP then?
Kamo
It's the single IP of the load balancer. Once the load balancer receives a request it will then forward that request to a real server in the cloud.
David Young