In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the prices of resources used to produce X will:
A. increase D, increase P, and increase Q.
B. decrease S, increase P, and decrease Q.
C. decrease S, decrease P, and decrease Q.
D. increase S, increase P, and increase Q.
Answer: B
Economics
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