In the Following Question You Are Asked to Determine, Other

question 55

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.Removing the subsidy placed on product X years ago will

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