Bananas and apples are substitutes. When the price of bananas rises, 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 quantity of apples rises and the equilibrium price of apples might rise or fall.
D) the equilibrium price of apples rises and the equilibrium quantity of apples rises.
C
You might also like to view...
The benefit estimation method employed by Carson and Mitchell in their analysis of the Clean Water Act was
a. the travel cost method (TCM) b. the contingent valuation method (CVM) c. the averting expenditure method (AEM) d. the hedonic price method (HPM)
You put money into an account and earn a real interest rate of 4 percent. Inflation is 2 percent, and your marginal tax rate is 25 percent. What is your after-tax real rate of interest?
a. 1.5 percent. b. 2.5 percent. c. 5.0 percent. d. 4.5 percent.
A government action that can help correct positive externalities is
A) a tax on producers of the good that provides external benefits. B) a subsidy to consumers of the good that provides external benefits. C) an effluent fee charged to producers of the good that provides external benefits. D) regulations aimed at reduced production by sellers of the good that provides external benefits.
An item to which a business holds legal claim is called a(n)
A. opportunity cost. B. loan. C. asset. D. liability.