If Consumers Suddenly Began Desiring More Apples and Fewer Oranges

question 418

Multiple Choice

If consumers suddenly began desiring more apples and fewer oranges,

• A) the market price of apples would rise, creating short-run economic profits in the apple industry. Current firms will expand output and new firms will enter the industry.
• B) the market price of oranges would fall, creating short-run economic losses in the orange industry. Current firms will reduce output and some will go out of business in the long run.
• C) neither a nor b are correct.
• D) both a and b are correct.

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Definitions:

Adapt

To modify oneself or one's behavior to better suit a new or changing environment or situation.

Negotiator

is an individual engaged in discussion with the aim of reaching an agreement or resolving a dispute between two or more parties.

Culture-As-Shared-Values

The concept that culture is a system of common values and beliefs that shapes and guides behavior within a group.

Culture-As-Dialectic

The concept that culture is formed through ongoing negotiations of opposing perspectives.