Final answer:
The increase in banana prices from $0.75 to $1.00 per pound will decrease the quantity demanded and may increase the quantity supplied, reflecting how both consumers and producers influence market prices.
Step-by-step explanation:
When the price of bananas increases from $0.75 a pound to $1.00 per pound, the law of demand suggests that consumers will generally buy less of the product at the higher price, because it costs more. Conversely, suppliers may be willing or able to supply more bananas at the higher price because they can earn more revenue on each pound of bananas sold.
In the market for bananas, this price increase will likely decrease the quantity demanded because consumers might seek alternatives or simply decide to purchase less due to the higher price. At the same time, increase the quantity supplied as producers respond to the higher potential profitability of selling bananas. This is an illustration of how consumers and producers collectively work to determine prices through their responses to changes in price.