60. SCENARIO 3.2: Mustard and mayonnaise are substitutes. Mustard and relish are complements. Mustard is a...

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60. SCENARIO 3.2: 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. 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: the equilibrium quantity could have increased, decreased, or remained the same and the equilibrium price to decrease. the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease. the equilibrium price to increase and the equilibrium quantity to decrease. both the equilibrium price and quantity to decrease. 60. SCENARIO 3.2: 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. 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: the equilibrium quantity could have increased, decreased, or remained the same and the equilibrium price to decrease. the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease. the equilibrium price to increase and the equilibrium quantity to decrease. both the equilibrium price and quantity to decrease.

Answer rating: 100% (QA)

Answer B The equilibrium price increases decreases or remain the same and equilibrium quantity decre... View the full answer