Bananas and Apples Are Substitutes

question 43

Multiple Choice

Bananas and apples are substitutes.When the price of bananas rises and a technological advance in apple production occurs at the same time,

• A) the equilibrium price of apples rises and the equilibrium quantity of apples falls.
• B) the equilibrium price of apples rises and the equilibrium quantity of apples rises.
• C) the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall.
• D) the equilibrium quantity of apples rises and the equilibrium price of apples might rise or fall.

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