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 rises.
C. the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall.
D. the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall.
Answer: D
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Figure 20-4
In Figure 20-4, which panel shows the impact of union efforts to have goods produced in Asia excluded from the U.S. market?
A. 1 B. 2 C. 3 D. 4
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