If Greg uses a special glue to make model planes that he sells and the price of his model planes increases,then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________.
A) increase;decrease
B) decrease;increase
C) increase;increase
D) decrease;decrease
E) increase;indeterminant

Question

Quizplus · Accepted Answer

When the price of model planes increases, Greg is likely to produce more planes to maximize profit, increasing the demand for special glue. This increased demand will raise the equilibrium price and quantity of the glue.

If Greg Uses a Special Glue to Make Model Planes