Harold can consume apples and oranges.He likes them equally well and currently is in consumer equilibrium.Then the price of oranges rises,while his income remains the same.What will happen to his consumption?
A)Consumption of oranges increases;consumption of apples decreases.
B)Consumption of oranges increases;consumption of apples increases.
C)Consumption of oranges decreases;consumption of apples decreases.
D)Consumption of oranges decreases;consumption of apples increases.
E)Consumption of oranges decreases;consumption of apples could either increase or decrease.

Question

Quizplus · Accepted Answer

The price of oranges rises, making them relatively more expensive than apples. As a result, Harold will substitute apples for oranges, decreasing his consumption of oranges and increasing his consumption of apples.

Harold Can Consume Apples and Oranges