What Will Happen to the Equilibrium Price and Quantity of New

question 132

Multiple Choice

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto workers negotiate higher wages?

• A) price will fall and the effect on quantity is ambiguous
• B) price will rise and the effect on quantity is ambiguous
• C) quantity will fall and the effect on price is ambiguous
• D) quantity will rise and the effect on price is ambiguous

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Definitions:

Personal Space

The physical area surrounding an individual that is considered personal or private, often influencing social interactions.

Food

Any nutritious substance that people or animals eat or drink to maintain life and growth.

Schemas

Mental structures or frameworks that organize and interpret information from the world, influencing perception, memory, and understanding.

Stereotypes

Overgeneralized beliefs about a particular category of people, leading to assumptions about individuals based on their group membership rather than personal characteristics.