Suppose There Are Only Two Goods, Apples and Oranges

question 164

Multiple Choice

Suppose there are only two goods, apples and oranges. What happens if the price of each good increases by 15 percent?

• A) The consumer will substitute apples for oranges.
• B) The consumer will substitute oranges for apples.
• C) There is no substitution effect because relative prices have remained constant.
• D) Demand for both goods increases.
• E) Demand for both goods decreases.

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Definitions:

Acute Confusion

A mental state in which a person appears bewildered and may make inappropriate statements and answers to questions.

Delirium

A serious disturbance in mental abilities that results in confused thinking and reduced awareness of the environment.

Sensory Deprivation

A state in which an individual has significantly reduced sensory inputs, which can lead to unique psychological experiences and insights.

Visual Deficit

Impairments in sight that can range from mild vision loss to complete blindness.