Answer to Question #327289 in Microeconomics for Anonymous

Question

Jenga is a popular game where the players have to remove and replace blocks to build a higher (and more unstable) tower. Jenga blocks are made of wood. If there is an increase in the price of a substitute for jenga and, simultaneously, an increase in the price of wood, the equilibrium price of jenga will:

1.either increase, decrease, or stay the same, and the equilibrium quantity could either decrease or increase.

2.either increase, decrease, or stay the same, and the equilibrium quantity will decrease.

3.increase and the equilibrium quantity will increase.

4.increase and the equilibrium quantity will either increase, decrease, or stay the same.

Answer 1

2. either increase, decrease, or stay the same, and the equilibrium quantity will decrease.