Refer to Scenario 3.3 below to answer the question(s) that follow.
SCENARIO 3.3:
-Mustard and mayonnaise are substitutes.
-Mustard and relish are complements.
-Mustard is a normal good.
-During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
-Refer to Scenario 3.3. The mustard recall would have caused the equilibrium price of mayonnaise to ________ and the equilibrium quantity of mayonnaise to ________.

Question

Quizplus · Accepted Answer

Since mustard and mayonnaise are substitutes, a decrease in the supply of mustard (due to the recall) would increase the demand for mayonnaise, leading to an increase in both the equilibrium price and quantity of mayonnaise.