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Exhibit 3-5 -Suppose That the Price of Bananas Has Been Rising While

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Exhibit 3-5
 Price per  Barrel  Quantity  Demanded  Quantity  Supplied $50725900$49745885$48775840$47800800$46830750\begin{array}{|c|c|c}\hline \begin{array}{c}\text { Price per } \\\text { Barrel }\end{array} & \begin{array}{c}\text { Quantity } \\\text { Demanded }\end{array} & \begin{array}{c}\text { Quantity } \\\text { Supplied }\end{array} \\\hline \$ 50 & 725 & 900 \\\hline \$ 49 & 745 & 885 \\\hline \$ 48 & 775 & 840 \\\hline \$ 47 & 800 & 800 \\\hline \$ 46 & 830 & 750 \\\hline\end{array}

-Suppose that the price of bananas has been rising while the amount sold has been falling. Which of the following is the best explanation?
(A) Cansuner preferences have shifted in favar of bananas because they are healthful
(B) Cansumer incames have risen faster than inflation.
(C) Bad weather has reduced 5ame banana craps.

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The best explanation is (C) because a re...

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