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:

Romantic Love

A complex set of emotions and behaviors characterized by passion, intimacy, and commitment, typically involving a strong attraction and emotional attachment to another person.

Companionate Love

A form of love characterized by deep affection, attachment, and commitment.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.

External Reward

Relates to incentives or rewards that come from an outside source, rather than from within, and motivate behavior.