What Will Happen to the Equilibrium Price and Quantity of New

question 249

Multiple Choice

What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto-workers negotiate higher wages?

• 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:

Tapering Shape

Describes an object or structure that gradually diminishes in size or thickness toward one end, often seen in design and architecture.

Mycenaean Palace Plan

The architectural layout of palaces in Mycenaean Greece, characterized by a central court and symmetrical rooms.

Megaron

The large reception hall and throne room in a Mycenaean palace, fronted by an open, two-columned porch.

Dromos

An ancient Greek term for an entranceway or avenue leading to a public building, temple, or tomb, typically lined with sphinxes or sculptures.