Bananas and Apples Are Substitutes

question 115

Multiple Choice

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.

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Definitions:

Sample Size

The number of observations or data points selected from a population for analysis, which impacts the reliability and accuracy of statistical results.

Specification Limits

Predetermined boundaries set for the acceptable range of product dimensions, materials, or performance standards to ensure quality.

Capability Index

A statistical measure used to assess the ability of a process to produce output within specified limits.

Process Mean

The average value in a set of process measurements, indicating the central tendency over a period of time.