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Price and equilibrium quantity of caviar

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Caviar and champagne are complements. Suppose you read that pollutants in rivers are negatively affecting the sturgeon that live in these waters. The result is that the sturgeon are laying fewer eggs than before

a. Explain the effects on the market for caviar. What do you expect will happen to the price and equilibrium quantity of caviar? (Use the concepts of demand and/or supply in your answer and explain your shift or shifts in words.)

b. Explain the effects on the the market for champagne. What do you expect will happen to the price and equilibrium quantity of champagne? (Use the concepts of demand and/or supply in your answer and explain your shift or shifts in words.)

Reference no: EM131948909

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