The Following Table Shows the Quantity Demanded and Quantity Supplied

question 26

Multiple Choice

The following table shows the quantity demanded and quantity supplied of grapefruits (in millions of kilos) :

-Refer to the table above to answer this question.If the price of oranges (a substitute) were to decrease,causing the demand for grapefruit to change by 12 million of kilos,what will be the new equilibrium price and quantity?

• A)$2.25 and 24 million kilos
• B)$2.25 and 48 million kilos
• C)$2.75 and 44 million kilos
• D)$3.25 and 40 million kilos

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Definitions:

Parent-subsidiary

The relationship between two corporations in which one corporation, the parent, owns sufficient voting stock in another corporation, the subsidiary, to control its board of directors.

Economic Entity

A unit in the economy that is capable of control over resources, incurring liabilities, and engaging in business activities.

Combined Financial Statements

Financial statements that present the assets, liabilities, and operating results of two or more affiliated companies as if they were a single economic entity.

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the financial position and results of operations as one entity.