Refer to Scenario 3.3 below to answer the question(s) that follow.SCENARIO 3.3: -Mustard and mayonnaise are substitutes. -Mustard and relish are complements. -Mustard is a normal good. -During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.Refer to Scenario 3.3. As a result of the recall, you would expect that
A. the price of mustard would increase and both the quantity of mustard supplied and the quantity of mustard demanded would increase.
B. the price of mustard would increase, the supply of mustard would increase, and the quantity demanded of mustard would decrease.
C. the supply of mustard would decrease, the price of mustard would increase, and the demand for mustard would decrease.
D. the supply of mustard would decrease, the price of mustard would increase, and the quantity demanded of mustard would decrease.
Answer: D
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You estimate that the income elasticity of demand for dairy products in the use is 0.20. If national income is predicted to decrease by 3%, what is the percentage change in dairy products expected (all else equal)?
a. +3% b. -3% c. + 0.6% d. - 0.6% e. Can't tell from the available information