Assuming That the Demand for Cars Is Constant, an Increase

question 33

Multiple Choice

Assuming that the demand for cars is constant, an increase in the cost of labour used in producing cars will lead to:

• A) an increase in the equilibrium price but a decrease in the equilibrium quantity.
• B) a decrease in the equilibrium price but an increase in the equilibrium quantity.
• C) a decrease in both the equilibrium price and quantity.
• D) an increase in both the equilibrium price and quantity.

---

Definitions:

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life.

Telecommunication Services

Services that provide communication over distances, including telephone, internet, and television services.

Right to Purchase

A legal agreement giving an individual or entity the option to buy something at a predetermined price within a specific timeframe.

Facilities and Services

Pertains to the physical locations and auxiliary aids provided by a business to support its operations and enhance customer experience.