Suppose There Are Only Two Goods, Apples and Oranges

question 170

Multiple Choice

Suppose there are only two goods, apples and oranges.What, if anything, will happen 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) The consumer will substitute apples for pears

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Definitions:

Physical Injury

Harm or damage to the body resulting from an external force, potentially causing pain, disability or death.

Trespasser

A person who enters someone else's property without permission or lawful excuse.

Roughhousing

Boisterous, physical play involving minor scuffles and wrestling, usually not intended to cause serious harm.

Neighbor's Property

Real estate or possession owned by individuals or entities located adjacent to or near one's property.