What Is the Effect of a Decrease in the Price

question 180

Multiple Choice

What is the effect of a decrease in the price of potato chips on the market for pretzels?

• A)Both equilibrium price and equilibrium quantity rise.
• B)Both equilibrium price and equilibrium quantity fall.
• C)Equilibrium price rises and equilibrium quantity falls.
• D)Equilibrium price falls and equilibrium quantity rises.
• E)Equilibrium price and equilibrium quantity remain unchanged.

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Definitions:

Expedited Credit

A banking service that provides faster funds availability to the depositor.

Substitute Check

A digital reproduction of an original check that has the same legal standing for purposes of clearing.

Consumer

Someone who buys or leases real estate, goods, or services for personal, family, or household purposes.