The following figure shows the market for grapefruit (in kilos):

-Refer to the diagram above to answer this question.If the price of oranges (a substitute)were to decrease,causing the demand for grapefruit to change by 12 kilos,what will be the new equilibrium price and quantity?
A)$2.25 and 24 kilos
B)$2.25 and 48 kilos
C)$2.75 and 44 kilos
D)$3.25 and 40 kilos

Question

The following figure shows the market for grapefruit (in kilos):
 
-Refer to the diagram above to answer this question.If the price of oranges (a substitute)were to decrease,causing the demand for grapefruit to change by 12 kilos,what will be the new equilibrium price and quantity?
A)$2.25 and 24 kilos 
B)$2.25 and 48 kilos 
C)$2.75 and 44 kilos 
D)$3.25 and 40 kilos

Quizplus · Accepted Answer

A decrease in the price of a substitute (oranges) would decrease the demand for grapefruits, leading to a lower equilibrium price and quantity. The new equilibrium is $2.25 and 24 kilos.

The Following Figure Shows the Market for Grapefruit (In Kilos)