Economics.?

ladytazzy41: Economics.?
Economics.the price of sugar increases,how would the market on candy be affected and would?
there be a shift in supply, demand, or both? also would this change the equilibrium?

Answers and Views:

Answer by Fereidoon A
since sugar is an ingredient of candy, sugar will directly effect candy. Since sugars input cost rose, that means that the supply for sugar went down and that also means that the supply for candy went down also. This an example of complimentary goods( goods that rely on one another).

Supply will shift to the left and equilibrium will also go down.