In the market for sushi, an increase in the price of fish along with an increase in the popularity of sushi among consumers will cause the equilibrium quantity to increase, but the effect on the equilibrium price is indeterminate.

Question

Quizplus · Accepted Answer

An increase in the price of fish (a key input) would decrease supply, while an increase in popularity would increase demand. The equilibrium quantity effect is indeterminate, but the equilibrium price will increase due to higher demand and lower supply.

In the Market for Sushi, an Increase in the Price