Papayas and Grapefruit Are Substitute Goods

Papayas and grapefruit are substitute goods. A drought in California destroyed a good portion of the grapefruit crop. Ceteris paribus,

A) the price of both papayas and grapefruit will increase.
B) the price of both papayas and grapefruit will fall.
C) the price of grapefruit will increase, and the price of papayas will fall.
D) the price of grapefruit will fall, and the price of papayas will increase.

Correct Answer:

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