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(Solved): Suppose I consume two goods, apples and bananas. If the price of bananas falls, I expect to consume ...



Suppose I consume two goods, apples and bananas. If the price of bananas falls, I expect to consume (more)/(less)/(the same amount) of apples. Question 10 options: more because the law of demand states that as the price of apples decreases, the quantity of apples will increase. it depends; we could consume more, less, or the same amount of apples depending on how I feel about apples. We need more information to know for certain. less apples because bananas became relatively cheaper therefore, our consumption of apples should decrease. more because apples became cheaper.



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