Business, 13.10.2021 01:00 jacamron

he supply of aged cheddar cheese is inelastic, and the supply of bread is elastic. Both goods are considered to be normal goods by a majority of consumers. Suppose that a large income tax increase decreases the demand for both goods by 10%. The equilibrium quantity will a. 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. 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. 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.

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he supply of aged cheddar cheese is inelastic, and the supply of bread is elastic. Both goods are co...

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