Assume a national brewing company loses market share to a lower-priced

Assume a national brewing company loses market share to a lower-priced competitor. Assume also that the company’s workers go on strike and are able to negotiate a hefty wage increase.

As such, we can conclude, with certainty, that the combination of these two changes would cause the equilibrium price and quantity of the company’s product to decrease. Indicate whether the statement is true or false

ANSWER

FALSE