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Because pancakes and syrup are often eaten together, they are compliments. Suppose that we observe that the equilibrium price of syrup and the equilibrium quantity
Because pancakes and syrup are often eaten together, they are compliments. Suppose that we observe that the equilibrium price of syrup and the equilibrium quantity of pancakes have fallen. What would be responsible for this pattern? Is it an increase in the price of honey, an increase in the price of flour or both? Explain using illustrations(graphs).
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