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Author Question: Refer to Scenario 3.3 below to answer the question(s) that follow. SCENARIO 3.3: Mustard and ... (Read 150 times)

jrubin

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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. As a result of the recall, you would expect that


◦ the supply of mustard would decrease, the price of mustard would increase, and the demand for mustard would decrease.
◦ the price of mustard would increase, the supply of mustard would increase, and the quantity demanded of mustard would decrease.
◦ the supply of mustard would decrease, the price of mustard would increase, and the quantity demanded of mustard would decrease.
◦ the price of mustard would increase and both the quantity of mustard supplied and the quantity of mustard demanded would increase.


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Marked as best answer by jrubin on Apr 19, 2019

iman

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iman

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