What would happen on price of pens and quantity exchanged


Problem

Consider the market for two goods that are substitutes ,such as pens and pencils. if a technological breakthrough reduced the cost of producing pens.

A. What would happen the supply of pen?

B. What would happen on the price of pens and the quantity exchanged?

C. What effect would this change in the price of pens have on the market for pencils?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: What would happen on price of pens and quantity exchanged
Reference No:- TGS02107505

Expected delivery within 24 Hours