The market for footballs is perfectly competitive.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

A decrease in the price of leather, a key input in the production of footballs, would lead to a decrease in production costs for football manufacturers. This would cause an increase in the supply of footballs, leading to a rightward shift of the supply curve. As a result, the equilibrium quantity of footballs would increase, while the equilibrium price would decrease. Therefore, the best choice is B.

The Market for Footballs Is Perfectly Competitive