Peaches and Cream Are Complements

question 243

Multiple Choice

Peaches and cream are complements.When the price of peaches rises 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 rises.
• D) the equilibrium quantity of cream falls and the equilibrium price of cream might rise or fall.

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Definitions:

Indirect Component

A factor or variable that contributes to an outcome through its effects on other variables, rather than directly.

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