Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions :
Figure 3-1
-Let P* and Q* represent market clearing price and quantity, respectively.Given the supply and demand curves drawn in Figure 3-1, an increase in the price of an input employed in the production of Q can be expected to cause:

A) P* and Q* to climb.
B) P* to climb while Q* falls.
C) P* to climb while Q* holds steady.
D) P* to fall while Q* climbs.
E) P* and Q* to fall.