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Pineapples and Kumquats Are Substitute Goods

Question 293

Multiple Choice

Pineapples and kumquats are substitute goods. Exceptional weather in Guatemala resulted in a bumper crop of pineapples. Ceteris paribus,


A) the price of both pineapples and kumquats will increase.
B) the price of both pineapples and kumquats will fall.
C) the price of kumquats will increase and the price of pineapples will fall.
D) the price of kumquats will fall and the price of pineapples will increase.

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