A pest attack destroys half of the California navel orange crop. Simultaneously, the price of kiwifruit, a substitute for navel oranges, falls. As a result, a. the demand for navel oranges would decrease but the supply would remain unchanged, resulting in a lower market equilibrium price and quantity b. the supply would decrease and the demand would increase, resulting in a higher market equilibrium price and an indeterminate change in market equilibrium quantity c. both supply and demand would decrease, resulting in a decrease in equilibrium quantity and an indeterminate change in price d. both supply and demand would increase resulting in an increase in equilibrium quantity and an indeterminate change in price.
A pest attack destroys half of the California navel orange crop. Simultaneously, the price of kiwifruit, a substitute for navel oranges, falls. As a result,
a. the
b. the supply would decrease and the demand would increase, resulting in a higher market equilibrium price and an indeterminate change in market equilibrium quantity
c. both
d. both supply and demand would increase resulting in an increase in equilibrium quantity and an indeterminate change in price.
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