Brendangrigley8129 Brendangrigley8129

16-02-2024
Business

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Suppose the demand function for widgets is given by Q_D = 80 - 0.35P + 0.5PG and the supply for widgets is given by Q_S = -10 + 0.45P - 0.5w where PG is the price of gadgets and w is the wage paid to wo. If the price of gadgets (PG) increases, what will happen to the equilibrium quantity of widgets?
A) Increase
B) Decrease
C) Remain unchanged
D) Cannot be determined

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