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Barbecue Sauce and Chicken Thighs Are Complement Goods

Question 47

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Barbecue sauce and chicken thighs are complement goods. Suppose that the government places a tax on chicken thighs to discourage the consumption of fatty meat. Barbecue sauce and chicken thighs are complement goods. Suppose that the government places a tax on chicken thighs to discourage the consumption of fatty meat.

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a. The higher price for chicken thighs o...

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