The Price of the Steel Used to Produce Engines Increases

question 292

Multiple Choice

The price of the steel used to produce engines increases. How does this price hike affect the demand for cars?

• A) It does not change the demand so that the demand curve does not shift.
• B) It decreases the demand so that the demand curve shifts leftward.
• C) It increases the demand so that the demand curve shifts rightward.
• D) There is not enough information to tell how the change affects the demand for cars.

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Restrictions

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