Because bagels and cream cheese are often eatentogether, they are complements.a. We observe that both the equilibrium price ofcream cheese and the equilibrium quantity ofbagels have risen. What could be responsible forthis pattern: a fall in the price of flour or a fallin the price of milk? Illustrate and explain youranswer.b. Suppose instead that the equilibrium price ofcream cheese has risen but the equilibriumquantity of bagels has fallen. What could beresponsible for this pattern: a rise in the price offlour or a rise in the price of milk? Illustrate andexplain your answer.

Because bagels and cream cheese are often eaten
together, they are complements.
a. We observe that both the equilibrium price of
cream cheese and the equilibrium quantity of
bagels have risen. What could be responsible for
this pattern: a fall in the price of flour or a fall
in the price of milk? Illustrate and explain your
answer.
b. Suppose instead that the equilibrium price of
cream cheese has risen but the equilibrium
quantity of bagels has fallen. What could be
responsible for this pattern: a rise in the price of
flour or a rise in the price of milk? Illustrate and
explain your answer.