The market for widgets is initially at equilibrium. The price of bizarros, a competitive substitute, increases in price. This would increase A A (increase/decrease) the demand A/ (supply/demand) for widgets. Supermanium, an input in the production of widgets. decreases in price. This would increase (increase/decrease) the supply A/ (supply/demand) of widgets. As a result, the equilibrium quantity will Increase (increase/decrease/cannot be determined) and the equilibrium price cannot be determined (increase/decrease/cannot be determined).

Q&A Education