Bananas and apples are substitutes. When the price of bananas falls, and a technological advance in apple production occurs at the same time
A) the equilibrium price of apples rises and the equilibrium quantity of apples falls.
B) the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall.
C) the equilibrium price of apples rises and the equilibrium quantity of apples rises.
D) the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall.
D
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Whenever somebody deposits a check from bank A into a checkable deposit at bank B, bank A's reserves ________ and bank B's reserves ________
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase E) do not change; do not change
A company can protect itself from the opportunity cost of rising rents in an area by buying its own building
a. True b. False Indicate whether the statement is true or false
According to the speculative demand for money, as interest rates fall, the quantity demanded of money will rise
Indicate whether the statement is true or false
A situation in which a benefit or a cost associated with an economic activity spills over to third parties is called
A) a public good. B) a merit good. C) an externality. D) the free-rider problem.