If the price of peanut butter decreases substantially (ceteris paribus), the equilibrium quantity of jelly, a complement, is likely to:
a. increase, and the equilibrium price of jelly is likely to decrease.
b. increase, and the equilibrium price of jelly is likely to increase.
c. decrease, and the equilibrium price of jelly is likely to decrease.
d. decrease, and the equilibrium price is of jelly likely to increase.
b
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Consider the market for credit. When the supply of credit increases while the demand for credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase. B) the interest rate will increase and the amount of credit provided in the market will increase. C) the interest rate will decrease and the amount of credit provided in the market will decrease. D) the interest rate will increase and the amount of credit provided in the market will decrease.
Compared with a firm in a perfectly competitive market, the demand curve faced by a monopolistically competitive firm is
A) more elastic. B) more inelastic. C) perfectly elastic. D) perfectly inelastic.