1.) what will happen to the equilibrium price and quantity of Good J if the price of Good H, a substitute of Good J, increases? Use a clearly-labeled supply-demand diagram to answer this question.

2.) Use a clearly-labeled supply-demand diagram to analyze the following situation. Consider the market for Good X. Suppose that the technology used to produce Good X improves at the same time that the price of Good Z, a complement to Good X, decreases.

 a.) Use the diagram to show the impact of these two events on the equilibrium price and quantity of Good X.

 b.) Is the change in the equilibrium price or the change in the equilibrium quantity uncertain?

Answer rating: 100% (QA)

ANS 1 H and J be substitute goods If the price of H increases the quant... View the full answer