Suppose in a Financial Crisis, Major Automakers Reduce Their Production

question 156

Multiple Choice

Suppose in a financial crisis, major automakers reduce their production of autos while consumers reduce their demand for autos. We can conclude with certainty that in the market of autos,

• A)both the equilibrium price and equilibrium quantity will increase.
• B)the equilibrium price will decrease and the equilibrium quantity will increase.
• C)the equilibrium price will decrease, but the equilibrium quantity will increase, decrease or remain unchanged.
• D)the equilibrium quantity will decrease, but the equilibrium price will increase, decrease or remain unchanged.
• E)both the equilibrium price and equilibrium quantity will decrease.

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Definitions:

Feared Object

An item or entity that induces a strong phobic or fearful response in an individual, usually stemming from negative experiences or innate anxieties.

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and anxieties by gradual exposure to the fear source while practicing relaxation techniques.

Cognitive Therapy

A form of psychotherapy focused on identifying and correcting negative thought patterns to improve emotional well-being and behavior.

Dissociative Identity Disorder

Dissociative Identity Disorder is a psychological condition characterized by the presence of two or more distinct personality states or identities within a single individual, previously known as multiple personality disorder.