Consider the market for bananas shown on the following graph. This market is initially at equilibrium where the supply curve (Supply) and demand curve (D1) intersect. Suppose that a news story suggesting that bananas contain dangerously high levels of pesticides compared to other fruits causes the demand for bananas to fall. The market for bananas after the change in demand is depicted by the new demand curve (D2)
This change not only affects the market for bananas, but other markets as well. Assume that oranges are a substitute for bananas. Which of the following statements are true when considering the effect of the decrease in the demand for bananas on the general equilibrium of an entire economy? Check all that apply. O Changes in other markets to respond to the bananas market could cause more changes to the bananas market in order for the economy to reach general equilibrium. O The equilibrium wage of people who use oranges to make orange juice could change. O All other markets for goods in this economy remain unaffected by the change to the bananas market.