Bananas and Apples Are Substitutes

question 108

Multiple Choice

Bananas and apples are substitutes.When the price of bananas falls and a technological advancement 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 price of apples falls and the equilibrium quantity of apples might rise or fall.

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Definitions:

Sustainable Company

A business that operates in a way that is environmentally responsible, economically viable, and socially equitable over the long term.

Quarterly Earnings

A financial report indicating a company's revenue, expenses, and net income over a three-month period.

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.

Short-termism

A tendency to prioritize immediate gains over long-term objectives and benefits.