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Because bagels and cream cheese are often eaten together, they are complements. Consider the effect of a rise in the price of flour, an input
Because bagels and cream cheese are often eaten together, they are complements. Consider the effect of a rise in the price of flour, an input to making bagels. On the following graph, show the effect of the rise in the price of flour on the market for bagels. Market for Bagels Supply Demand Supply Price of Bagels Demand Quantity of Bagels Therefore, a rise in the price of flour would cause the equilibrium price of bagels to and the equilibrium quantity of bagels toOn the following graph, show the effect of the rise in the price of flour on the market for cream cheese. Market for Cream Cheese O Supply Demand O Supply Price of Cream Cheese Demand Quantity of Cream Cheese Therefore, a rise in the price of flour would cause the equilibrium price of cream cheese to * and the equilibrium quantity of cream cheese to
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