Change in equilibrium price and quantity.

Question

Which of the following might lead to an increase in the equilibrium price of jelly and adecrease in the equilibrium quantity of jelly sold?a. an increase in the price of peanut better , a complement to jellyb. an increase in the price of plum preserves a substitute for jellyc. an increase in the price of grapes, an input into jellyd . an increase in consumers’ incomes, as long as jelly is a normal good

Answer 1

Question

Chapter 4, Problem 6CQQ

To determine

Change in equilibrium price and quantity.

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Which of the following might lead to an increase in the equilibrium price of jelly and adecrease in the equilibrium quantity of jelly sold?a. an increase in the price of peanut better , a complement to jellyb. an increase in the price of plum preserves a substitute for jellyc. an increase in the price of grapes, an input into jellyd . an increase in consumers’ incomes, as long as jelly is a normal good

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