Exhibit 4.6 -Identify the Effect of a Reduction in the Price of in the Price

question 58

Multiple Choice

Exhibit 4.6

-Identify the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles for a given demand curve.

• A) an increase in both the equilibrium price and equilibrium quantity
• B) a decrease in both the equilibrium price and equilibrium quantity
• C) an increase in the equilibrium price and a decrease in the equilibrium quantity
• D) a decrease in the equilibrium price and an increase in the equilibrium quantity
• E) an increase in the equilibrium price but no change in the equilibrium quantity

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Definitions:

Openly

In a manner that is not secretive or hidden; conducting actions in a visible and public way, often implying transparency or honesty.

Continuously

Occurring without interruption or cessation; ongoing.

Adverse

Unfavorable or harmful conditions or circumstances that can negatively affect or pose challenges to individuals or entities.

Necessity

A term that can refer to a state of being required or indispensable, or, in legal terms, a defense that asserts an act was done out of a need to prevent a greater harm.