Suppose That the Price of Doughnuts Decreases and That Doughnut-Holes

question 58

Multiple Choice

Suppose that the price of doughnuts decreases and that doughnut-holes are a by-product of producing doughnuts. One would expect:

• A)the supply of doughnuts to decrease.
• B)the quantity supplied of doughnuts to decrease.
• C)the supply of doughnut-holes to increase.
• D)the quantity supplied of doughnut-holes to increase.

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