Kiwis and strawberries are substitutes for consumers.An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of strawberries.
A) raises; increases
B) probably changes, but more information is needed to determine if it rises or falls; increases
C) raises; probably changes, but more information is needed to determine if it increases or decreases
D) lowers; probably changes, but more information is needed to determine if it increases or decreases
E) lowers; increases

Question

Quizplus · Accepted Answer

An increase in the price of kiwis will increase the demand for strawberries, raising the equilibrium price. However, an increase in the number of strawberry growers will increase the supply, which tends to lower the price. The net effect on price is uncertain without more information, but the quantity will increase.

Kiwis and Strawberries Are Substitutes for Consumers