Papayas and grapefruit are substitute goods. A drought in California destroyed a good portion of the grapefruit crop. Ceteris paribus,
A. the price of both papayas and grapefruit will fall.
B. the price of both papayas and grapefruit will increase.
C. the price of grapefruit will increase, and the price of papayas will fall.
D. the price of grapefruit will fall, and the price of papayas will increase.
Answer: B
You might also like to view...
The unemployment rate measures the percentage of people in the labor force who can't find a job
Indicate whether the statement is true or false
Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4, and Winnie maximizes his profit when he employs 4 workers, the wage rate is
A) $90 per day. B) $30 per day. C) $70 per day. D) $50 per day.
What is the difference between an "increase in supply" and an "increase in quantity supplied"?
A) There is no difference between the two terms; they both refer to a movement along a given supply curve. B) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" means at any given price supply has increased. C) There is no difference between the two terms; they both refer to a shift of the supply curve. D) An "increase in supply" means the supply curve has shifted to the right while an "increase in quantity supplied" refers to a movement along a given supply curve in response to an increase in price.
In a monopoly market, no dominant strategies are possible.
Answer the following statement true (T) or false (F)