Assume There Is a Simultaneous Decrease in the Cost of Batteries

question 61

Multiple Choice

Assume there is a simultaneous decrease in the cost of batteries used in hybrid cars and a shift in consumer preferences toward more fuel-efficient vehicles.Based on this,we can conclude,with certainty,that in the market for hybrid cars,equilibrium:

• A)price will decrease.
• B)price will increase.
• C)quantity will decrease.
• D)quantity will increase.

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Definitions:

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements globally.

Noncontrolling Interest

It refers to the ownership in a subsidiary not attributable to the parent company, representing a minority share that does not control the company.

Assets

Economic resources owned or controlled by a business or an individual which are expected to produce future benefit.