Consider a market for cookies that is initially in equilibrium.For a given upward-sloping supply curve,the equilibrium price and equilibrium quantity of cookies is most likely to decline when:

A) the price of milk,a complement,increases.
B) consumer income increases.
C) the number of consumers increases.
D) the price of coffee,a complement,decreases.
E) price of crackers,a substitute,increases.

Question

Blake Moore · Accepted Answer

Final Answer : A, Explanation :  When the price of milk, a complement to cookies, increases, consumers are less likely to buy milk, which in turn reduces the demand for cookies. This leads to a decrease in both the equilibrium price and quantity of cookies.

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