Two Events Occur Simultaneously in the Market for Automobiles: (1)an

question 118

Multiple Choice

Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line technology and (2) a recession in the economy that decreases consumers' income.Which of the following can be predicted about this market with certainty?

• A)Equilibrium quantity will rise.
• B)Equilibrium quantity will fall.
• C)Equilibrium price will rise.
• D)Equilibrium price will fall.
• E)Equilibrium price will remain the same.

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Definitions:

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Resources

Assets or materials that can be drawn upon by a person or organization in order to function effectively.

Stakeholders

Individuals or groups that have an interest or stake in the success and activities of a company or project.

Universalization Test

A philosophical concept used in ethics to determine if an action's principle can be applied universally without contradiction.