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MMLU / What will happen to the equilibrium price and the equilibrium quantity of good Z…

Problem

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question

What will happen to the equilibrium price and the equilibrium quantity of good Z when the price of good X which is a close substitute for Z rises?

choices

  1. The equilibrium price will rise and the equilibrium quantity will fall.
  2. The equilibrium price will fall and the equilibrium quantity will rise.
  3. The equilibrium price and the equilibrium quantity will both rise.
  4. The equilibrium price and the equilibrium quantity will both fall.

subject

high_school_macroeconomics

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Source and history

Official source

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