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Suppose Another Cyclone Once Again Destroys the Australian Banana Crop

Question 13

Multiple Choice

Suppose another cyclone once again destroys the Australian banana crop, while at the same time medical evidence suggests eating bananas prevents weight gain. We would expect the price of bananas to__________ and the quantity of bananas to ___________.


A) increase; increase or decrease
B) increase; decrease
C) increase; increase
D) decrease; increase or decrease

Correct Answer:

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