Peaches and Cream Are Complements

question 7

Multiple Choice

Peaches and cream are complements.When the price of peaches falls and the price of raw milk (used to make cream) rises,

• A) the equilibrium price of cream rises and the equilibrium quantity of cream might rise or fall.
• B) the equilibrium price of cream falls and the equilibrium quantity of cream might rise or fall.
• C) the equilibrium price of cream falls and the equilibrium quantity of cream falls.
• D) the equilibrium price of cream falls and the equilibrium quantity of cream rises.

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