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Assume Milk Is Used to Produce Ice Cream

Question 62

Multiple Choice

Assume milk is used to produce ice cream.Ceteris paribus,a decrease in the price of milk will cause the equilibrium price of ice cream to


A) Increase and the equilibrium quantity of ice cream to increase.
B) Increase and the equilibrium quantity of ice cream to decrease.
C) Decrease and the equilibrium quantity of ice cream to increase.
D) Decrease and the equilibrium quantity of ice cream to decrease.

Correct Answer:

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