Bananas and apples are substitutes. When the price of bananas falls and a technological advancement in apple production occurs at the same time: A the equilibrium price of apples rises and the equilibrium quantity of apples falls. B the equilibrium price of apples rises and the equilibrium quantity of apples rises. C the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. D the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall.

One of the growers is excited by this advancement because now he can sell more crops, which he believes will increase revenue in this market. as an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market. using the midpoint method, the price elasticity of demand for soybeans between the prices of $5 and $4 per bushel is , which means demand is between these two points. therefore, you would tell the grower that his claim is because total revenue will as a result of the technological advancement.