In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the price of a product that is a complement to X will

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Quizplus · Accepted Answer

An increase in the price of a complement to X will decrease the demand for X, as consumers will be less likely to purchase X if they need to purchase a more expensive complement as well. This decrease in demand will lead to a decrease in the equilibrium price and quantity of X.

In the Following Question You Are Asked to Determine, Other