Consider the market for potato chips, which is currently in equilibrium. Now, suppose that two events happen simultaneously: (1) a new technology is invented that allows potato chip makers to produce potato chips at a lower cost and (2) the price of pretzels (a substitute in consumption) rises. What effect might these events have on the market for cupcakes?Supply will increase.Demand will increase.The change in equilibrium price cannot be determined.The change in equilibrium quantity cannot be determined.
A) I, II, and III only
B) II and III only
C) I and IV only
D) I, II, and IV only

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The Answer of Consider the market for potato chips, which is currently in equilibrium. Now, suppose that two events happen simultaneously: (1) a new technology is invented that allows potato chip makers to produce potato chips at a lower cost and (2) the price of pretzels (a substitute in consumption) rises. What effect might these events have on the market for cupcakes?Supply will increase.Demand will increase.The change in equilibrium price cannot be determined.The change in equilibrium quantity cannot be determined.
A) I, II, and III only
B) II and III only
C) I and IV only
D) I, II, and IV only

Consider the Market for Potato Chips, Which Is Currently in Equilibrium