Coffee and donuts are complements in consumption. Suppose bad weather in the coffee producing regions of the world, which shifts the coffee supply curve leftward. How do the general equilibrium price and quantity outcomes compare to the partial equilibrium outcomes for this situation?
A) General equilibrium price and quantity are higher.
B) General equilibrium price is higher and quantity is lower.
C) General equilibrium price is lower and quantity is higher.
D) General equilibrium price and quantity are lower.

Question

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The Answer of Coffee and donuts are complements in consumption. Suppose bad weather in the coffee producing regions of the world, which shifts the coffee supply curve leftward. How do the general equilibrium price and quantity outcomes compare to the partial equilibrium outcomes for this situation?
A) General equilibrium price and quantity are higher.
B) General equilibrium price is higher and quantity is lower.
C) General equilibrium price is lower and quantity is higher.
D) General equilibrium price and quantity are lower.

Coffee and Donuts Are Complements in Consumption