Factors of production are grouped into four categories

If the price of peanuts increases by 10 percent and the price of potato chips does not change, then the relative price of peanuts with respect to potato chips will ________ and the relative price of potato chips with respect to peanuts will ________

A) rise; rise B) rise; fall C) fall; rise D) fall; fall

If an import tariff is reduced, the domestic quantity demanded is ____ and the quantity supplied domestically is ____, ____ the quantity of goods imported. a. greater; lower; reducing

b. lower; greater, reducing. c. greater; lower; increasing. d. lower; greater; increasing.