Refer to Scenario 3

question 208

Multiple Choice

Refer to Scenario 3.3 below to answer the question(s) that follow.
SCENARIO 3.3:
-Mustard and mayonnaise are substitutes.
-Mustard and relish are complements.
-Mustard is a normal good.
-During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.
-Refer to Scenario 3.3. If at the same time of the mustard recall, consumer income also decreased. Then, ceteris paribus, in the market for mustard this would have caused

• A) both the equilibrium price and quantity to decrease.
• B) the equilibrium price to increase and the equilibrium quantity to decrease.
• C) the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease.
• D) the equilibrium quantity could have increased, decreased, or remained the same and the equilibrium price to decrease.

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Definitions:

Countries

Politically defined territories that possess their own government, laws, and sovereignty.

Educational Attainment

Refers to the number of years of school students complete.

Years Of School

The total number of years that an individual has formally attended educational institutions, including both primary and secondary education.

Legacy Factor

The influence of historical achievements or status on present circumstances, often affecting an entity's reputation, opportunities, or resources.