Coffee and donuts are complements in consumption. Suppose the economy expands so that consumer income increases, and coffee is a normal good. What impact does this change in the coffee market have on the donut market under a general equilibrium analysis?
A) Donut demand shifts rightward and donut price and quantity increase.
B) Donut demand shifts rightward, donut price increases, and donut quantity declines.
C) Donut demand shifts leftward, donut price declines, and donut quantity increases.
D) Donut demand shifts leftward and donut price and quantity decline.

Question

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The Answer of Coffee and donuts are complements in consumption. Suppose the economy expands so that consumer income increases, and coffee is a normal good. What impact does this change in the coffee market have on the donut market under a general equilibrium analysis?
A) Donut demand shifts rightward and donut price and quantity increase.
B) Donut demand shifts rightward, donut price increases, and donut quantity declines.
C) Donut demand shifts leftward, donut price declines, and donut quantity increases.
D) Donut demand shifts leftward and donut price and quantity decline.

Coffee and Donuts Are Complements in Consumption