If Oranges and Grapefruit Are Close Substitutes, an Increase in the Price

question 202

Multiple Choice

If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of

• A)both products to the right.
• B)both products to the left.
• C)grapefruit to the right.
• D)oranges to the left.

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Definitions:

Capital Gain Distributions

The payment of proceeds realized from the sale of an asset held in a mutual fund or ETF, distributed to investors as a taxable distribution.

Income Distributions

Payments, often periodic, received by investors from assets they own, such as dividends from stocks or interest from bonds.

Rate of Return

The increase or decrease in the value of an investment during a set period, represented as a proportion of the investment's original price.