A New Car Is Typically Considered to Be a Normal

question 135

Multiple Choice

A new car is typically considered to be a normal good.What would happen to the equilibrium price and quantity of new cars if there is a recession where many people lose their jobs?

• A) The equilibrium price would rise and the equilibrium price would fall as demand shifts to the left.
• B) The equilibrium price and quantity would both fall as demand shifts to the left.
• C) The equilibrium price and quantity would both rise as demand shifts to the right.
• D) The equilibrium price would fall and the equilibrium quantity would rise as demand shifts to the right.
• E) There would be no change to the equilibrium price or quantity.

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Definitions:

Ignatius Loyola

Founder of the Society of Jesus (Jesuits), which was a significant force in the Counter-Reformation.

Catholic Reformation

A period of Catholic revival beginning in the late 16th century, in response to the Protestant Reformation, aiming to reform and renew the Roman Catholic Church.

Capuchins

An order of friars within the Catholic Church, known for their missionary work and simple lifestyle, identifiable by their distinct brown robes with large hoods.

Ursulines

A Roman Catholic religious order founded at Brescia, Italy, by St. Angela Merici in 1535, primarily focused on the education of young girls.