Which of the following 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 the equilibrium price and equilibrium quantity of pretzels will increase.
B) Both the equilibrium price and equilibrium quantity of pretzels will fall.
C) The equilibrium price of pretzels will increase, and the equilibrium quantity of pretzels will fall.
D) The equilibrium price of pretzels will fall, and the equilibrium quantity of pretzels will increase.
E) The equilibrium price and equilibrium quantity of pretzels will remain unchanged.
Correct Answer:
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Q155: Exhibit 4.6 Q156: Exhibit 4.6 Q157: Suppose the market for beef cattle was Q158: Exhibit 4.6 Q159: Suppose the market for a good is Q161: Two events occur simultaneously in the market Q162: In which of the following situations is Q163: Over the last few years, the demand Q164: Table 4.6 Q165: Exhibit 4.7 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
