Suppose Two Events Occur Simultaneously in the Market for Automobiles

question 21

Multiple Choice

Suppose two events occur simultaneously in the market for automobiles: an improvement in assembly line technology and the economy enters a recession (which decreases consumers' income) .What is likely to happen to equilibrium price?  

• A) Price will rise. 
• B) Price will fall. 
• C) Price will remain the same. 
• D) Price will rise and then fall.

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Definitions:

Situational Attributions

The process of explaining the behavior of others based on external factors or circumstances, rather than attributing their actions to internal characteristics.

Biological Trait

A characteristic or feature of an organism that is inherited from its parents and can be physically observed or measured.

External

Referring to or situated on the outside of something; coming or deriving from a source outside the subject affected.

Out-Group

A group of people excluded from or not belonging to one's own group, often leading to us vs. them mentality.