Pineapples and Kumquats Are Substitute Goods

question 151

Multiple Choice

Pineapples and kumquats are substitute goods. Exceptional weather in Guatemala resulted in a bumper crop of pineapples. Ceteris paribus,

• A) the price of both pineapples and kumquats will increase.
• B) the price of both pineapples and kumquats will fall.
• C) the price of kumquats will increase and the price of pineapples will fall.
• D) the price of kumquats will fall and the price of pineapples will increase.

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