What Is the Effect of a Reduction in the Price

question 157

Multiple Choice

What is the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles?

• A)Both equilibrium price and equilibrium quantity rise.
• B)Both equilibrium price and equilibrium quantity fall.
• C)Equilibrium price rises and equilibrium quantity falls.
• D)Equilibrium price falls and equilibrium quantity rises.
• E)Both equilibrium price and equilibrium quantity remain unchanged.

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Definitions:

Hydraulic Pump

A device that converts mechanical energy into hydraulic energy by forcing fluid from a reservoir into a hydraulic system.

Rpm

Stands for revolutions per minute, a measure of the frequency of rotation, specifically the number of rotations around a fixed axis in one minute.

Load

The amount of electrical power or physical weight that is applied or carried by a system or component.

Spool Valves

Mechanical devices used in hydraulic and pneumatic systems to control the flow of fluid or air, typically by moving a cylindrical spool within a housing to open or close channels.