Suppose There Are Only Two Goods, Apples and Oranges

question 164

Multiple Choice

Suppose there are only two goods, apples and oranges. What happens if the price of each good increases by 15 percent?

• A) The consumer will substitute apples for oranges.
• B) The consumer will substitute oranges for apples.
• C) There is no substitution effect because relative prices have remained constant.
• D) Demand for both goods increases.
• E) Demand for both goods decreases.

---

Definitions:

Quantitative Management

An approach to management that focuses on statistical and mathematical models to solve business problems and make decisions.

Mathematical Techniques

Methods or procedures derived from mathematical principles used to solve problems or analyze data.

Human Resource

The department within an organization that deals with the recruitment, management, and development of employees.

Inventory Analysis

The examination and evaluation of stock to ensure efficient management and optimization of resources.