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Bagels and Cream Cheese Are Complementary Goods

Question 62

Multiple Choice

Bagels and cream cheese are complementary goods. Suppose that the price of flour, which is used to produce bagels, increases. The equilibrium price of CREAM CHEESE ________, and the equilibrium quantity of CREAM CHEESE ________.


A) rises; decreases
B) falls; decreases
C) does not change; does not change
D) rises; increases
E) falls; increases

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