Orange juice and apple juice are substitute goods. Assume that many acres of apple orchards are converted to land for housing development. Which of the following is most likely to occur in the apple juice and orange markets? * The demand for apple juice will stay the same and the demand for orange juice will increase. The demand for apple juice will decrease and the demand for orange juice will increase. The price of apple juice and orange juice will decrease. O The supply for apple juice and orange juice will increase. The supply for apple juice will stay the same, but the supply of orange juice will decrease.
Orange juice and apple juice are substitute goods. Assume that many acres of apple orchards are converted to land for housing development. Which of the following is most likely to occur in the apple juice and orange markets? * The demand for apple juice will stay the same and the demand for orange juice will increase. The demand for apple juice will decrease and the demand for orange juice will increase. The price of apple juice and orange juice will decrease. O The supply for apple juice and orange juice will increase. The supply for apple juice will stay the same, but the supply of orange juice will decrease.
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 3P
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Transcribed Image Text:Orange juice and apple juice are substitute goods. Assume that many acres of
apple orchards are converted to land for housing development. Which of the
following is most likely to occur in the apple juice and orange markets? *
The demand for apple juice will stay the same and the demand for orange juice will
increase.
The demand for apple juice will decrease and the demand for orange juice will
increase.
The price of apple juice and orange juice will decrease.
The supply for apple juice and orange juice will increase.
The supply for apple juice will stay the same, but the supply of orange juice will
decrease.
If the government wants to put a per unit tax on a product so that it can raise
revenue to support local schools, it would most likely accomplish this goal by
doing which of the following? *
placing a tax on a good with an elastic demand.
O placing a tax on a good that has many substitutes.
O placing a tax on a good with an inelastic demand.
O placing a tax on a good with a perfectly elastic demand.
O relying of the goodness of mankind and simply ask for donations.
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