Identify How the Described Changes Will Affect Equilibrium Price and Equilibrium

question 25

Multiple Choice

identify how the described changes will affect equilibrium price and equilibrium quantity
-Widgets and Wadgets are considered substitute goods in the market for accessories.The price of Widgets falls at the same time there is an increase of suppliers of Wadgets.

• A)Increase in equilibrium price; increase in equilibrium quantity
• B)Decrease in equilibrium price; decrease in equilibrium quantity
• C)Equilibrium price is indeterminate; increase in equilibrium quantity
• D)Increase in equilibrium price; equilibrium quantity is indeterminate

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Definitions:

Donee

The recipient of a gift or donation, who is typically not required to provide anything in return to the donor.

Incidental

Occurring as a minor accompaniment to something else or happening as a subordinate or secondary aspect.

Promisor

In a third-party beneficiary contract, the party to the contract who made the promise that benefits the third party.

Promisee

The person to whom a promise is made or who will benefit from the fulfillment of the promise in a contractual agreement.