"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:

Dissociative Amnesia

A psychological condition characterized by memory loss that is too extensive to be explained by ordinary forgetfulness and is not due to a neurological condition.

Psychological Disorders

Mental disorders characterized by persistent disturbance or dysfunction in behavior, thoughts, or emotions that causes significant distress or impairment.

Anterograde Amnesia

The inability to form new memories following the onset of an amnesia-causing event, despite typically retaining memories from before the event.

Dissociative Fugue

A psychological state in which a person temporarily loses their sense of personal identity and impulsively wanders or travels away from their home.