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Explain What Will Happen to the Equilibrium Price and Quantity

question 25

Essay

Explain what will happen to the equilibrium price and quantity of hybrid automobiles if there are technological advancements in the production of hybrid automobiles while at the same time consumer preference for hybrid automobiles increases.


Definitions:

Utility

A measure of satisfaction or benefit that a consumer receives from consuming goods and services.

Consumer Derives

The satisfaction or utility that a consumer obtains from the consumption of goods and services.

Total Utility

The complete fulfillment obtained from the consumption of a specific overall amount of a product or service.

Satisfaction

The feeling of fulfillment or contentment one derives from meeting a need or desire.

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