As the Price of Milk Increases,what Would Reasonably Be Expected

question 68

Multiple Choice

As the price of milk increases,what would reasonably be expected to happen to the equilibrium price and equilibrium quantity of cereal? (Milk and cereal are complements.)

• A)Equilibrium price would increase and equilibrium quantity would decrease.
• B)Equilibrium price and quantity would both decrease.
• C)Equilibrium price would decrease and equilibrium quantity would increase.
• D)Equilibrium price and quantity would both increase.