Assume the Costs of Production in the U

question 47

Multiple Choice

Assume the costs of production in the U.S.auto industry are rising and,at the same time,the prices of Japanese-made autos are decreasing.What would reasonably be expected to happen to the equilibrium price and quantity of U.S.-made autos?

• A)Price will increase; quantity cannot be determined.
• B)Price will decrease; quantity cannot be determined.
• C)Quantity will increase; price cannot be determined.
• D)Quantity will decrease; price cannot be determined.