Question

"Market for blueberries: Determine the change in the market for blueberries with the following 2 changes. Raspberries (substitute) fall in price. And, Fertilizer (input) costs fall.

Group of answer choices
a. Price rises, Quantity change is uncertain
b. Price falls, Quantity change is uncertain
c. Quantity decreases, Price change is uncertain
d. Quantity increases, Price change is uncertain"

Answer 1

Answer: d. Quantity increases, Price change is uncertain.

Step-by-step explanation:

Answer: d. Quantity increases, Price change is uncertain.

When the price of raspberries falls, blueberries become a more attractive substitute, and consumers will switch to buying more blueberries. When fertilizer costs fall, farmers can produce blueberries more cheaply, so they will likely increase the supply of blueberries. This will cause both the price and the quantity of blueberries to change, with the quantity increasing and the price remaining uncertain.