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:

Sediment

Particles of organic or inorganic matter that accumulate in a solid layer on the bottom of a body of water or other liquid due to the process of sedimentation.

Naked Eye

Relating to the ability to see or observe an object or event unaided by any optical instruments, such as telescopes or microscopes.

Sandstone

A sedimentary rock consisting of sand-sized mineral particles or rock fragments compacted and cemented together.

Natural Cements

Substances that occur in nature, which can act to bind materials together through a chemical or physical process.