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. General equilibrium analysis predicts a ____ effect on the equilibrium price and a ____ effect on the quantity of barbecue sauce than partial equilibrium analysis.
A) larger; larger
B) larger; smaller
C) smaller; larger
D) smaller; smaller
Correct Answer:

Verified
Correct Answer:
Verified
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