"Because Apples and Oranges Are Substitutes, an Increase in the Price

question 109

Multiple Choice

"Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase.This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right." Which of the following correctly comments on this statement?

• A)The statement will be true if consumer tastes for apples and oranges do not change.
• B)The statement is false because a change in the price of apples would not change the demand for apples.
• C)The statement is false because oranges are inferior goods; apples are normal goods.
• D)The statement is false because one cannot assume that apples and oranges are substitutes for all consumers.

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Definitions:

Totality

In philosophy and critical theory, a concept referring to the whole of reality or experience, considered as a complete system or entity.

Synchronicity

Synchronicity is a concept introduced by Carl Jung that refers to events that are meaningfully related, yet not causally connected, suggesting a deeper order in the universe.

Diachronic

Pertaining to the study of phenomena, such as languages, as they change over time.

Class Consciousness

The awareness and understanding individuals have of their place in a class structure, specifically recognizing common vested interests and the need for collective political action.