If Consumers Buy a Large Number of Plug-In Electric Cars,the

question 239

Multiple Choice

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

• A) rise; increase
• B) rise; decrease
• C) fall; increase
• D) fall; decrease
• E) not change; increase

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Definitions:

Capital

Economic resource that is used in the production of goods and services. It includes tools, buildings, machinery, and equipment.

Either-Or Decision

A decision-making process that involves choosing between two mutually exclusive options or paths.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns, not directly involving monetary payment.

Marginal Analysis

The study of marginal decisions.