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Given a Downward-Sloping Demand Curve and an Upward-Sloping Supply Curve

Question 42

Multiple Choice

Given a downward-sloping demand curve and an upward-sloping supply curve for product A,an increase in the price of substitute product B and a simultaneous technological innovation in making product A will:


A) increase equilibrium quantity, but the change in equilibrium price will depend on the relative sizes of the shifts in demand and supply
B) decrease equilibrium quantity, but the change in equilibrium price will depend on the relative sizes of the shifts in demand and supply
C) increase equilibrium price, but the change in equilibrium quantity will depend on the relative sizes of the shifts in demand and supply
D) decrease equilibrium price, but the change in equilibrium quantity will depend on the relative sizes of the shifts in demand and supply
E) keep equilibrium price and quantity the same

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