Suppose we observe a decrease in the equilibrium price of tuna and an increase in the equilibrium quantity of tuna. This is best explained by:
A. a decrease in the expected future price of tuna.
B. an increase in the price of salmon, a substitute for tuna.
C. a decrease in the cost of fuel used by tuna fishing boats.
D. a decrease in the tuna population in the oceans.
Answer: C
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A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease
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What will be an ideal response?
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Indicate whether the statement is true or false
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