Which of the Following Raises the Equilibrium Price and Increases

question 310

Multiple Choice

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

• A) a fall in income if used cars are an inferior good
• B) an increase in the wage rate paid to used car salespeople
• C) neither of the above because the question suggests a violation of the "law of demand"
• D) neither of the above because the question suggests a violation of the "law of supply"

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Definitions:

Mandatory

Something that is required or obligatory by law or rules.

Chilling Effect

A chilling effect occurs when the exercise of rights or freedoms is discouraged by the threat of legal sanction or other negative consequences, leading to self-censorship or avoidance of certain actions.

Arbitration

A method of dispute resolution where an impartial third party, the arbitrator, makes a binding decision to resolve a dispute outside of court.

Contract Disputes

Conflicts that arise over the interpretation, fulfillment, or breach of a contract between two or more parties.