Pineapples and kumquats are substitute goods. Exceptional weather in Guatemala resulted in a bumper crop of pineapples.
Ceteris paribus
◦ the price of both pineapples and kumquats will increase.
◦ the price of both pineapples and kumquats will fall.
◦ the price of kumquats will increase and the price of pineapples will fall.
◦ the price of kumquats will fall and the price of pineapples will increase.