If Oranges Were Found to Cure Cancer

question 94

Multiple Choice

If oranges were found to cure cancer,

• A) the equilibrium price of apples would likely fall.
• B) the equilibrium price of oranges would likely increase in the near term.
• C) the equilibrium quantity of oranges would likely increase.
• D) All of the above.

---

Definitions:

Accrued Interest

The interest on a loan or bond that has accumulated since the principal investment, or last payment, and has yet to be paid.

Principal

The original sum of money borrowed in a loan or the initial amount of investment, excluding any interest or dividends.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or institutional investors for the first time.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.