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. Refer to the given information.An increase in the price of a product that is a complement to X will:

Question

Quizplus · Accepted Answer

An increase in the price of a complement to X will decrease the demand for X (as the price of its complement has increased) and therefore decrease the equilibrium quantity of X. The decrease in demand will result in a decrease in the equilibrium price of X as well. The supply of X remains unchanged in this scenario.

In the Following Question You Are Asked to Determine,other Things