If the price of apples falls and apples and oranges are substitutes, we would expect:
A)The quantity of apples demanded to increase and the demand for oranges to increase.
B)The quantity of oranges demanded to decrease and the demand for apples to increase.
C)The quantity of apples demanded to increase and the demand for oranges to decrease.
D)The quantity of oranges demanded to decrease and the demand for apples to decrease.

Question

If the price of apples falls and apples and oranges are substitutes, we would expect:
A)​The quantity of apples demanded to increase and the demand for oranges to increase.
B)​The quantity of oranges demanded to decrease and the demand for apples to increase.
C)​The quantity of apples demanded to increase and the demand for oranges to decrease.
D)​The quantity of oranges demanded to decrease and the demand for apples to decrease.

Quizplus · Accepted Answer

If the price of apples falls, the quantity of apples demanded will increase (law of demand). As apples and oranges are substitutes, some consumers may switch from oranges to apples, causing the demand for oranges to decrease. Therefore, we would expect the quantity of apples demanded to increase and the demand for oranges to decrease.

If the Price of Apples Falls and Apples and Oranges