Two Events Occur Simultaneously in the Market for Automobiles: (1)

question 176

Multiple Choice

Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line technology and (2) a recession in the economy that decreases consumers' income. Which of the following can be predicted about this market with certainty?

• A) the equilibrium quantity will rise
• B) the equilibrium quantity will fall
• C) the equilibrium price will rise
• D) the equilibrium price will fall
• E) the equilibrium price will remain the same

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Definitions:

Maintained Contact

A switch mechanism that keeps or maintains its position (either on or off) until manually changed or actuated.

Momentary Contact

Momentary contact refers to an electrical switch or relay contact that only completes the circuit while being physically engaged or pressed.

Three-Wire

A wiring configuration typically used in electrical circuits, incorporating a live wire, a neutral wire, and a ground wire for safety.

Normally-Open

A contact configuration in switches or relays that is open (non-conducting) when at rest, closing only when activated.