Changing the price of good Y will
A) only affect the demand for that good.
B) have effects across some markets.
C) keep prices down in all markets.
D) have no effect.

Question

Quizplus · Accepted Answer

Changing the price of good Y will have effects across some markets because if good Y is a substitute or complement for other goods, its price change will affect the demand for those goods as well. Additionally, if the production of good Y requires certain inputs, changing its price could also affect the supply and price of those inputs, potentially impacting other markets.

Changing the Price of Good Y Will