What Will Happen to the Equilibrium Price and Quantity of Gasoline

question 178

Multiple Choice

What will happen to the equilibrium price and quantity of gasoline powered lawnmowers if the prices of battery powered lawnmowers goes down and, at the same time, firms switch from producing gasoline powered lawnmowers to producing battery powered lawnmowers?

• 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:

Vigorous Exercise

Physical activity of high intensity that significantly raises heart rate and energy expenditure.

Euphoria

A feeling of intense happiness or joy, often beyond what's expected from the situation.

Endorphins

Endorphins are natural hormones produced by the brain in response to stress or pain, which function as neurotransmitters to reduce discomfort and promote feelings of pleasure or euphoria.

Dopamine

A neurotransmitter involved in controlling movement and posture, moderating mood, and affecting motivation and reward mechanisms in the brain.