If the Price of Ice Cream Increases Substantially (Ceteris Paribus)

question 81

Multiple Choice

If the price of ice cream increases substantially (ceteris paribus) , the equilibrium quantity of hot fudge sauce, a complement, is likely to:

• A)increase, and the equilibrium price is likely to decrease.
• B)increase, and the equilibrium price is likely to increase.
• C)decrease, and the equilibrium price is likely to decrease.
• D)decrease, and the equilibrium price is likely to increase.
• E)decrease, while the impact on equilibrium price is uncertain.

---

Definitions:

Holtz Motor

A type of single-phase synchronous motor.

RPM

Revolutions per minute, a unit of rotational speed that indicates the number of turns made by an object in one minute.

Universal Motor

An electric motor that can operate on either AC or DC power and is commonly used in portable tools and appliances.

AC

Alternating Current, a type of electrical current where the flow of electric charge periodically reverses direction, commonly used in power supplies.