In the late summer and autumn, as growers harvest their crops, the supply of fresh fruit increases. Considering the relevant demand curves, explain why the price of fresh fruit falls much more sharply than the price of tinned fruit.
A) The supply of tinned fruit is much more price elastic than the supply of fresh fruit.
B) The price of fresh fruit exceeds the price of tinned fruit.
C) The demand for tinned fruit is much more price elastic than the demand for fresh fruit.
D) The market for tinned fruit is subject to excess demand.
E) The market for fresh fruit is subject to excess supply.
Correct Answer:
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