Answer to Question #210547 in Economics for Paballo

Question

The market for pencils is in equilibrium. If the price of pens (a substitute for pencils) increases the impact on the market for pencils will be ___________ in equilibrium price and __________ in equilibrium quantity.

•  A. an increase; a decrease
•  B. an increase; an increase
•  C. a decrease; an increase
•  D. a decrease; a decrease

Answer 1

B. an increase; an increase