The supply of aged cheddar cheese is inelastic, and the supply of bread is elastic. Both goods
Question:
Refer to Scenario. The equilibrium quantity will
a. | decrease in both markets such that the size of the change in equilibrium quantity will be smaller in the aged cheddar cheese market than in the bread market. | |
b. | increase in the aged cheddar cheese market and a decrease in the bread market such that the size of the change in equilibrium quantity will be smaller in the aged cheddar cheese market than in the bread market. | |
c. | decrease in the aged cheddar cheese market and increase in the bread market such that the size of the change in equilibrium quantity will be larger in the aged cheddar cheese market than in the bread market. | |
d. | increase in both markets such that the size of the change in equilibrium quantity will be greater in the aged cheddar cheese market than in the bread market. |
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold