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Suppose Milk and Cereal Are Compliments and the Demand for Milk

Question 19

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Suppose milk and cereal are compliments and the demand for milk is Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease ,where Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease stands for millions of gallons of milk demanded, Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease stands for the price of milk and Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease stands for the price of cereal.The supply of milk is Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease ,where Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease stands for millions of gallons of milk supplied.The demand and supply of cereal are Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease and Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease ,respectively,where Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease stands for millions of boxes of cereal demanded and Suppose milk and cereal are compliments and the demand for milk is ,where stands for millions of gallons of milk demanded, stands for the price of milk and stands for the price of cereal.The supply of milk is ,where stands for millions of gallons of milk supplied.The demand and supply of cereal are and ,respectively,where stands for millions of boxes of cereal demanded and stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium A) The price of both milk and cereal increase B) The price of milk increases and the price of cereal decreases C) The price of milk decreases and the price of cereal increases D) The price of both milk and cereal decrease stands for millions of boxes of cereal supplied.Suppose the government imposes a $2.00 per gallon tax on milk.In the new general equilibrium


A) The price of both milk and cereal increase
B) The price of milk increases and the price of cereal decreases
C) The price of milk decreases and the price of cereal increases
D) The price of both milk and cereal decrease

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