Solved

People Like to Put Marshmallows in Their Hot Chocolate

Question 58

Multiple Choice

People like to put marshmallows in their hot chocolate. An increase in the price of hot chocolate mix will have what effect on the marshmallow market?


A) decrease the equilibrium price and quantity of marshmallows
B) increase the equilibrium price and quantity of marshmallows
C) decrease the equilibrium quantity and increase the equilibrium price of marshmallows
D) have no effect on the equilibrium quantity or price of marshmallows

Correct Answer:

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