Kiwi Fruit and Strawberries Are Substitutes for Consumers

question 24

Multiple Choice

Kiwi fruit and strawberries are substitutes for consumers. An increase in the price of a kiwi fruit coupled with an increase in the number of strawberry growers ________ the equilibrium price of a kilogram of strawberries and ________ the equilibrium quantity of strawberries.

• A) lowers; increases
• B) probably changes, but more information is needed to determine if it raises or lowers; increases
• C) raises; increases
• D) lowers; probably changes, but more information is needed to determine if it increases or decreases
• E) raises; probably changes, but more information is needed to determine if it increases or decreases

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Definitions:

Eyewitnesses

Individuals who have directly seen an event or occurrence and can provide a first-hand account or testimony of what happened.

Racial or Ethnic Group

A category of people who identify with each other based on similarities such as common ancestral, linguistic, cultural, or national experiences.

Nonthreatening

Describes an attitude, behavior, or situation that does not pose any danger or cause anxiety.

Outgroup Homogeneity Bias

The assumption that outgroup members are more similar to one another than ingroup members are to one another.