Given a Downward-Sloping Demand Curve and an Upward-Sloping Supply Curve

question 33

Multiple Choice

Given a downward-sloping demand curve and an upward-sloping supply curve for product A,an increase in the price of complementary product B and the decrease in the price of a resource used in making product A will:

• A)increase equilibrium quantity, but the change in equilibrium price will depend on the relative sizes of the shifts in demand and supply
• B)decrease equilibrium quantity, but the change in equilibrium price will depend on the relative sizes of the shifts in demand and supply
• C)increase equilibrium price, but the change in equilibrium quantity will depend on the relative sizes of the shifts in demand and supply
• D)decrease equilibrium price, but the change in equilibrium quantity will depend on the relative sizes of the shifts in demand and supply
• E)keep equilibrium price and quantity the same