Raisin Bran and Milk Are Complementary Goods

question 105

Multiple Choice

Raisin bran and milk are complementary goods.A decrease in the price of raisins will

• A) increase consumer surplus in the market for raisin bran and decrease producer surplus in the market for milk.
• B) increase consumer surplus in the market for raisin bran and increase producer surplus in the market for milk.
• C) decrease consumer surplus in the market for raisin bran and increase producer surplus in the market for milk.
• D) decrease consumer surplus in the market for raisin bran and decrease producer surplus in the market for milk.