What is the effect of a decrease in the price of potato chips on the market for pretzels,a substitute good,that is initially in equilibrium?
A) Both equilibrium price and equilibrium quantity of pretzels will increase.
B) Both equilibrium price and equilibrium quantity of pretzels will fall.
C) Equilibrium price will increase and equilibrium quantity of pretzels will fall.
D) Equilibrium price will fall and equilibrium quantity of pretzels will increase.
E) Equilibrium price and equilibrium quantity of pretzels remain unchanged.
Correct Answer:
Verified
Q78: When a surplus arises in the market
Q79: Which of the following is likely to
Q80: A shortage of textbooks is most likely
Q81: For a given upward-sloping supply curve,an increase
Q82: Consider the market for a good that
Q84: The table given below shows the
Q85: Suppose the price of compact disks (CDs)increases,other
Q86: Suppose a market is in equilibrium.An increase
Q87: Consider a market for cookies that is
Q88: The table given below shows the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents