The Price of Oranges Rises

question 96

Multiple Choice

The price of oranges rises.What happens in the market for apples, which are a substitute for oranges?

• A) The equilibrium price falls, and the equilibrium quantity rises.
• B) The equilibrium price rises, and the equilibrium quantity falls.
• C) The equilibrium price and quantity rise.
• D) The equilibrium price and quantity fall.

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Definitions:

Late 1970s

A period marked by significant economic, political, and cultural changes, including inflation crises and the beginning of neoliberal policies in many countries.

Money Supply

The total fiscal reserves available in an economy, counting cash, coins, and the balances held across checking and savings accounts, at a particular time.

Last Four Decades

Refers to the most recent forty-year period, often used in contexts discussing historical trends, developments, and changes.

American Banks

Financial institutions located in the United States that provide a variety of services, including accepting deposits, offering loans, and managing investments.