Goods A and B are substitutes in production. The price of good A rises. As a result, the equilibrium price of good B -, and the equilibrium quantity A) rises; decreases B) falls; increases C) falls; decreases D) rises; increases

Consider the supply of nails shown in Figure 2. The initial supply of nails is S (in black), the initial price of a pound of nails is $12, and the initial quantity supply of nails is 40K pounds. Which of the following correctly describes the effect of a decrease in the price of a pound of nails from $12 to $5?        A) The supply curve shifts left to S'' (in red), and the quantity supply of nails decreases to 25K pounds.       B) The supply curve remains at S (in black), and the quantity supply of nails remains at 40K pounds.       C) The supply curve remains at S (in black), and the quantity supply of nails decreases to 25K pounds.       D) The supply curve shifts left to S'' (in red), and the quantity supply of nails remains at 40K pounds.

Oyster crackers are a complement for clam chowder. If the price of clam chowder falls, the quantity of clam chowder demanded    , which    the demand for oyster crackers. Because of the change in the equilibrium quantity of oyster crackers, the demand for wheat flour by oyster cracker producers    , causing the equilibrium price of wheat flour to    . This means producers of bread face    input prices, and the supply of bread    . The resulting    in the price of bread causes people to substitute    , so the demand for cereal    .

Resource X is necessary to the production of good Y. If the price of resource X rises, the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y. A. supply; rightward; decrease; increase. B. demand; leftward; decrease; decrease C. demand; rightward; increase; increase D. supply; leftward; increase; decrease E. supply; leftward; increase; increase