Which of the following is most likely to cause an increase in equilibrium price and a decrease in equilibrium quantity in the market for plastic dog toys?
A) An increase in consumer incomes.
B) An increase in the cost of electricity.
C) A decrease in employee healthcare costs.
D) An increase in the cost of pet toys made from natural materials.

Question

Which of the following is most likely to cause an increase in equilibrium price and a decrease in equilibrium quantity in the market for plastic dog toys?
A) An increase in consumer incomes.
B) An increase in the cost of electricity.
C) A decrease in employee healthcare costs.
D) An increase in the cost of pet toys made from natural materials.

anonymous · Answer

umm D cuz an increase in the cost of production would increase the price and decrease the quantity demand by the consumers.