If the demand for jelly decreases, and the price of grapes (used to make jelly) rises
A) the equilibrium price of jelly falls and the equilibrium quantity of jelly might rise or fall.
B) the equilibrium price of jelly rises and the equilibrium quantity of jelly might rise or fall.
C) the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly falls.
D) the equilibrium price of jelly might rise or fall, and the equilibrium quantity of jelly rises.
C
You might also like to view...
Product differentiation complicates the study of oligopolies because such markets may not:
a. be efficient. b. have prices equal to marginal cost. c. have free entry and exit. d. obey the law of one price.
The demand curve for a typical good has
A. a negative slope because consumers purchase less of the good as the price rises. B. a negative slope because the supply of the good rises as demand rises. C. a negative slope because the good has less “snob appeal” as its price falls. D. a positive slope because as the price goes up, the good has more profitability. E. a positive slope because price is a clear indicator of need.