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Suppose Milk and Cereal Are Compliments and the Demand for Milk

Question 26

Multiple Choice

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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal ,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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal 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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal 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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal 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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal ,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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal 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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal 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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal ,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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal 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) Consumers purchase more milk and cereal B) Consumers purchase less milk and cereal C) Consumers purchase more milk and less cereal D) Consumers purchase less milk and more cereal 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) Consumers purchase more milk and cereal
B) Consumers purchase less milk and cereal
C) Consumers purchase more milk and less cereal
D) Consumers purchase less milk and more cereal

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