Suppose You Are Told That the Equilibrium Price of Bananas

question 45

Multiple Choice

Suppose you are told that the equilibrium price of bananas has increased, while the equilibrium quantity of bananas has fallen. You are also told that either the demand changed or supply changed, but not both. Which of the following must have occurred?

• A) Demand increased.
• B) Demand decreased.
• C) Supply increased.
• D) Supply decreased.

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Definitions:

Air Canada

The largest airline of Canada, providing scheduled and charter air transport for passengers and cargo.

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Assets, materials, and other supplies available to an individual or organization for achieving specific goals.

Time

A continuous sequence of events or the measurement thereof, which is a fundamental concept in physics, perception, and many aspects of human life.

Computerized Short-Term Scheduling

The use of computer software to plan and schedule production tasks on a short-term basis to improve efficiency and resource allocation.