Almonds and Walnuts Are Substitutes

question 89

Multiple Choice

Almonds and walnuts are substitutes. Suppose the world demand for walnuts increases.
Using partial equilibrium analysis, the equilibrium price of almonds will ____ and quantity of almonds will ____.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

---

Definitions:

Marginal Utility

The extra pleasure or benefit a buyer receives from purchasing an additional unit of a product or service.

Total Utility

The overall satisfaction or fulfillment a consumer derives from consuming a particular quantity of goods or services.

Marginal Utility

The extra pleasure or benefit gained from consuming an additional unit of a product or service.

Total Utility

The total satisfaction received from consuming a certain amount of a good or service.