If all else is held constant and the price of leather decreases,we would expect that the equilibrium quantity of footballs would ________ and the equilibrium price would ________.

Question

Quizplus · Accepted Answer

If the price of leather decreases, it would make the production of footballs cheaper. This would lead to an increase in the supply of footballs. As a result, the supply curve would shift to the right. This would result in a decrease in the equilibrium price and an increase in the equilibrium quantity of footballs. Therefore, the correct answer is B, i.e., the equilibrium quantity of footballs would rise, and the equilibrium price would fall.

If All Else Is Held Constant and the Price of Leather