Suppose that coconuts and bananas are complements in consumption. Suppose further that theprice of coconuts decreases while, at the same time, a fungal disease kills ten percent of the world'sbanana crop. Everything else held constant, the equilibrium price of bananas willequilibrium quantity of bananas transacted willand theSelect one:O A. be ambiguous; be ambiguousO B. be ambiguous; increaseO C. decrease; be ambiguousO D. decrease; increaseO E. increase; decreaseOF. decrease; decreaseO G. be ambiguous; decreaseO H. increase; be ambiguousincrease; increase

here we find the answer of the given question as follow;

Suppose that coconuts and bananas are complements in consumption. Suppose further that the price of coconuts decreases while, at the same time, a fungal disease kills ten percent of the world's banana crop. Everything else held constant, the equilibrium price of bananas will and the equilibrium quantity of bananas transacted will Select one: OA. be ambiguous; be ambiguous O B. be ambiguous; increase OC. decrease; be ambiguous O D. decrease; increase E. increase; decrease OF. decrease; decrease G. be ambiguous; decrease

Suppose that coconuts and bananas are complements in consumption. Suppose further that the price of coconuts decreases while, at the same time, a fungal disease kills ten percent of the world's banana crop. Everything else held constant, the equilibrium price of bananas will and the equilibrium quantity of bananas transacted will Select one: OA. be ambiguous; be ambiguous O B. be ambiguous; increase OC. decrease; be ambiguous O D. decrease; increase E. increase; decrease OF. decrease; decrease G. be ambiguous; decrease

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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