In the Market for Bananas, the Price Is $2

question 248

Multiple Choice

In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and

• A) the quantity supplied increases because the price falls.
• B) increases the demand for bananas.
• C) increases the quantity of bananas demanded.
• D) creates a shortage of bananas.

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Definitions:

Spending Power

The financial ability of individuals or groups to purchase goods and services, often influenced by income and economic conditions.

Population

In research or demographics, it refers to the total group of individuals or items that is the subject of statistical analysis.

Subcultures

Subgroups within the larger, or national, culture with unique values, ideas, and attitudes.

National Culture

The set of shared values, beliefs, practices, and norms that characterizes the population of a nation.