In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and

Name: In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and
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Question

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An increase in the supply of bananas leads to a decrease in price, which in turn increases the quantity of bananas demanded according to the law of demand. This is because consumers are more willing to buy more bananas at the lower price.

In the Market for Bananas, the Price Is $2