Tomato sauce and spaghetti noodles are complementary goods. A decrease in the price of tomatoes will
a. increase consumer surplus in the market for tomato sauce and decrease producer surplus in the market for spaghetti noodles.
b. increase consumer surplus in the market for tomato sauce and increase producer surplus in the market for spaghetti noodles.
c. decrease consumer surplus in the market for tomato sauce and increase producer surplus in the market for spaghetti noodles.
d. decrease consumer surplus in the market for tomato sauce and decrease producer surplus in the market for spaghetti noodles.
b
You might also like to view...
What is an automatic stabilizer?
A) It refers to a discretionary policy that is triggered when actual output is not equal to potential output to improve the economy's performance. B) It refers to a stabilization program that keeps inflation in check automatically. C) It refers to any government program that tends to reduce fluctuations in GDP automatically. D) It refers to a government program that is automatically triggered when the economy enters a recession.
What kinds of risks can't be insured?
What will be an ideal response?