A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2018 · Q111 Mark
Good X has a substitute, good Y, and a complement, good Z. The price of good Y decreases and the price of good Z increases. Why might the equilibrium price of good X remain unchanged?
AProducers of good X adopt new technology.
BProducers of good X receive a subsidy.
CSome firms stop production of good X.
DThe tax on the production of good X is cut.
✓ Correct answer
C: Some firms stop production of good X.
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