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

---

Definitions:

Cause-and-effect Organization

A method of structuring written or spoken content that outlines reasons and their consequential outcomes.

Chronological Organization

An arrangement of events, activities, or information in the order of their occurrence in time.

Sequential Order

An arrangement of items or events in a series following their sequence in time, order, or logic.

Cause-and-effect Organization

A method of structuring content that connects events and actions (causes) to their outcomes (effects).