The makers of Jazzy Cola have come to you for advice. Two of the inputs to their production process, which they have creatively labeled Input A and Input B to maintain the secrecy of their formula, are substitutes, and they want to know what will happen in the market for Input A if the price of Input B decreases. Use the graph of the market for Input A to indicate the effect of the change in price of Input B. PRICE QUANTITY Supply of Input A Demand for Input A Demand for Input A Supply of Input A (?) From the graph, you can deduce that the change in price of Input B would lead the equilibrium price of Input A to quantity to and the equilibrium
The makers of Jazzy Cola have come to you for advice. Two of the inputs to their production process, which they have creatively labeled Input A and Input B to maintain the secrecy of their formula, are substitutes, and they want to know what will happen in the market for Input A if the price of Input B decreases. Use the graph of the market for Input A to indicate the effect of the change in price of Input B. PRICE QUANTITY Supply of Input A Demand for Input A Demand for Input A Supply of Input A (?) From the graph, you can deduce that the change in price of Input B would lead the equilibrium price of Input A to quantity to and the equilibrium
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 8P
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