Which of the Following Raises the Equilibrium Price and Increases

question 39

Multiple Choice

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

• A) a fall in income if used cars are an inferior good
• B) an increase in the wage rate paid to used car salespeople
• C) Neither of the above because the question suggests a violation of the "law of demand."
• D) Neither of the above because the question suggests a violation of the "law of supply."

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Definitions:

Environmental Forces

External factors, such as social, economic, technological, competitive, and regulatory considerations, that affect a business's operations and performance.

Controllable Factors

Elements of the marketing mix (product, price, place, promotion) that a company can directly manage and adjust.

Marketing Mix

A set of controllable tools that a firm uses to produce a response in its target market, typically involving the four Ps: Product, Price, Place, and Promotion.

Civil War Records

Documents and archives that contain information regarding the American Civil War, including battles, personnel, and other historical data.