Multiple Choice
What is the effect of a decrease in the price of potato chips on the market for pretzels,a substitute good,that is initially in equilibrium?
A) Both equilibrium price and equilibrium quantity of pretzels will increase.
B) Both equilibrium price and equilibrium quantity of pretzels will fall.
C) Equilibrium price will increase and equilibrium quantity of pretzels will fall.
D) Equilibrium price will fall and equilibrium quantity of pretzels will increase.
E) Equilibrium price and equilibrium quantity of pretzels remain unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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