In the Following Question You Are Asked to Determine, Other

question 239

Multiple Choice

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 close substitute for X will

• A) decrease D, increase P, and decrease Q.
• B) increase D, increase P, and decrease Q.
• C) increase D, increase P, and increase Q.
• D) increase D, decrease P, and increase Q.

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Definitions:

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