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Barbecue Sauce and Chicken Thighs Are Complement Goods

Question 38

Multiple Choice

Barbecue sauce and chicken thighs are complement goods. Suppose that the government places a tax on chicken thighs to discourage the consumption of fatty meat. The partial equilibrium effect of the tax on the barbecue sauce market is for price to ____ and quantity to ____.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Correct Answer:

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