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The Price of Peanut Butter Rises Due to a Blight

Question 4

Multiple Choice

The price of peanut butter rises due to a blight on the peanut crop; peanut butter and jelly are complements. What happens to the equilibrium quantity and price of jelly?


A) Equilibrium price falls, equilibrium quantity increases.
B) Equilibrium price rises, equilibrium quantity falls.
C) Equilibrium price falls, equilibrium quantity falls.
D) Equilibrium price rises, equilibrium quantity rises.

Correct Answer:

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