The market for good B is in equilibrium. Then a technological innovation reduces costs of production of good B and, simultaneously, the price of a complement good increases. The equilibrium price of good B will either increase, decrease, or stay the same, and the equilibrium quantity will increase. decrease and the equilibrium quantity will either increase, decrease, or stay the same. increase and the equilibrium quantity will either increase, decrease, or stay the same. either increase, decrease, or stay the same, and the equilibrium quantity will decrease.

The market for good B is in equilibrium. Then a technological innovation reduces costs of production of good B and, simultaneously, the price of a complement good increases. The equilibrium price of good B will either increase, decrease, or stay the same, and the equilibrium quantity will increase. decrease and the equilibrium quantity will either increase, decrease, or stay the same. increase and the equilibrium quantity will either increase, decrease, or stay the same. either increase, decrease, or stay the same, and the equilibrium quantity will decrease.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 3.4P

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Question

13.
The market for good B is in equilibrium.
Then a technological innovation reduces
costs of production of good B and,
simultaneously, the price of a
complement good increases. The
equilibrium price of good B will
either increase, decrease, or stay the
same, and the equilibrium quantity will
increase.
decrease and the equilibrium quantity
will either increase, decrease, or stay the
same.
increase and the equilibrium quantity will
either increase, decrease, or stay the
same.
either increase, decrease, or stay the
same, and the equilibrium quantity will
decrease.

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