Consider the market for feather pillows.If there is an increase in the price of feather dusters,a substitute in production for feather pillows,then
A) the price of feather pillows decreases.
B) the demand curve for feather pillows shifts leftward.
C) the supply curve for feather pillows shifts leftward.
D) there is a downward movement along the demand curve for feather pillows.
E) the demand curve for feather pillows shifts rightward.

Question

Quizplus · Accepted Answer

An increase in the price of a substitute in production, such as feather dusters, will increase the cost of producing feather pillows. This will cause a decrease in the supply of feather pillows, and therefore a leftward shift of the supply curve. As a result, the equilibrium price of feather pillows will increase and the quantity demanded will decrease. None of the other choices accurately reflect the relationship between the price of feather dusters and the market for feather pillows.

Consider the Market for Feather Pillows