If an increase in leather prices caused a decrease in the supply of baseball gloves, ________.
A)the price of baseballs increased, and the demand for baseballs decreased
B)the equilibrium quantity of baseballs increased
C)the price of baseballs increased, and the quantity demanded of baseballs decreased
D)the price of baseballs increased; the higher price caused the supply of baseballs to increase

Question

Quizplus · Accepted Answer

An increase in leather prices would likely increase the cost of producing baseball gloves, causing a decrease in the supply of them. This would likely cause the price of baseball gloves to increase. In turn, this increase in price would likely lead to a decrease in the quantity demanded of baseball gloves. It would not necessarily have an effect on the price or demand for baseballs. Therefore, choice C is the best answer.

If an Increase in Leather Prices Caused a Decrease in the Supply