Suppose that coconuts and bananas are complements in consumption. Suppose further that theprice of coconuts decreases while, at the same time, a fungal disease kills ten percent of the world'sbanana crop. Everything else held constant, the equilibrium price of bananas willequilibrium quantity of bananas transacted willand theSelect one:O A. be ambiguous; be ambiguousO B. be ambiguous; increaseO C. decrease; be ambiguousO D. decrease; increaseO E. increase; decreaseOF. decrease; decreaseO G. be ambiguous; decreaseO H. increase; be ambiguousincrease; increase

here we find the answer of the given question as follow;

Suppose that coconuts and bananas are complements in consumption. Suppose further that the price of coconuts decreases while, at the same time, a fungal disease kills ten percent of the world's banana crop. Everything else held constant, the equilibrium price of bananas will and the equilibrium quantity of bananas transacted will Select one: OA. be ambiguous; be ambiguous O B. be ambiguous; increase OC. decrease; be ambiguous O D. decrease; increase E. increase; decrease OF. decrease; decrease G. be ambiguous; decrease

Suppose that coconuts and bananas are complements in consumption. Suppose further that the price of coconuts decreases while, at the same time, a fungal disease kills ten percent of the world's banana crop. Everything else held constant, the equilibrium price of bananas will and the equilibrium quantity of bananas transacted will Select one: OA. be ambiguous; be ambiguous O B. be ambiguous; increase OC. decrease; be ambiguous O D. decrease; increase E. increase; decrease OF. decrease; decrease G. be ambiguous; decrease

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose that video game discs are a normal good.. If the income of video game players increases, you predict that in the market for video games, O both equilibrium price and quantity will fal. O equilibrium price will increase, and quantity will decrease. o both equilibrium price and quantity will increase. O equilibrium price will fall, but quantity will increase.
Answer the following questions
stion 96 A decrease in the price of coffee, other things being equal, causes a(n): leftward shift in the demand curve for coffee. O downward movement along the demand curve for coffee. Orightward shift in the demand curve for coffee. O upward movement along the demand curve for coffee.
A change in "demand" of a good is caused by demanded" of a good is caused by a change in "quantity O a change in the price of the good; a change in the price of a complement. O a price ceiling; a change in the price of the good. O a change in the price of a substitute; a change in the price of the good. O a change in the price of a complement; a change in the price of a substitute.
If goods A and B are substitutes, an increase in the price of A will result in Select one: a. no difference in the quantity sold of either good O b. None of the answers are correct O c. increases the demand for O d. reduces the demand for B
If demand is price inelastic: O a. A decrease in price reduces sales O b. An increase in price must raise profits O c. An increase in price increases revenue O d. An increase in price decreases revenue
Solve the attachment
Suppose you know that the price of Gasoline has recently increased. Explain whether you can determine if this was as a result of s shift in supply and/or demand and why. 5.
Answer both correctly. I ll rate accordingly. Typed answer please.
The price of good A will rise if: O a. The demand for good A decreases. O b. The price of a complement for good A decreases. O c. The price of a substitute for good A decreases. Od. The price of a complement for good A increases.
Which of the following will NOT cause a shift in the demand for DVDS? O A change in taste O A change in disposable income O A change in the price of DVDS O A change in the price of CDs
Other things remaining the same, the law of demand implies that: Select one: O a. as the price of a product increases, the quantity demanded of the same product decreases O b. as the price of a product increases, the quantity demanded of a substitute product decreases c. as the price of a product increases, the demand of the same product decreases demanded of a complementary product decreases O d. as the price of a product increases, the quantity demanded of a complementary product decreases By definition: a substitute is a good that: Select one: O a. has same likeness as another good O b. O c. of lower quality than another good O d. of higher quality than another good that is not used in place of another good