Question #63971

x is a normal good let Y be compliment with X and Z by substituents for X. determine change in market equilibrium if there is a increase in price of Z and decrease in price of inputs used to make X

Expert's answer

Demand on X will increase, supply on X will increase. As a result output of X will increase, price of X can increase, decrease of stay the same. Demand of Y will increase, so price and output of Y will increase

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