Assume that tea and lemons are complements and coffee and tea are substitutes. Say that the government imposes a price ceiling on tea that is below the current market equilibrium price. a)How, if at all, will this affect the price of lemons? b)How, if at all , will this affect the price of coffee?

Macroeconomics
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ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
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Assume that tea and lemons are complements and coffee and tea are substitutes. Say that the government imposes a price ceiling on tea that is below the current market equilibrium price.

a)How, if at all, will this affect the price of lemons?

b)How, if at all , will this affect the price of coffee?

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