Many pairs of men's dress shoes are made of leather. Suppose the price of this leather
decreases. At the same time, more and more businesses are adopting a relatively casual
dress code for their workers. It is not uncommon for jeans and tennis shoes to be
appropriate for work. What impact would this have on the equilibrium price and quantity
of men's dress shoes?
The equilibrium quantity of men's dress shoes would increase, but the effect on the equilibrium
price would be ambiguous.
The equilibrium price of men's dress shoes would decrease, but the effect on the equilibrium
quantity would be ambiguous.
The equilibrium price would decrease but the equilibrium quantity would increase.
Both the equilibrium price and quantity would decrease.