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AP® Microeconomics

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Equilibrium Price Change: Blue Jeans

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Based on the above graph, which of the following scenarios could result in a change in equilibrium price from $P1$ to $P2$?

A

Blue jeans are a normal good and incomes increase, and the price of cotton, used to produce denim, increases.

B

Blue jeans become more popular, and the number of companies manufacturing blue jeans increases.

C

Blue jeans are an inferior good and incomes increase, and the cost of producing blue jeans decreases.

D

The price of t-shirts, a complementary good for blue jeans, increases, and the wages of blue jean laborers increases.

E

The price of yoga pants, a substitute good for blue jeans, increases, and the wages of blue jean laborers decrease.