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.

Understand the conditions under which the central limit theorem applies to sampling distributions involving differences between means.

Calculate and interpret p-values and test statistics for hypothesis tests concerning population means and proportions.

Conduct and interpret the results of hypothesis tests for differences between two population means using sample data.

Analyze hypotheses and make decisions based on p-value and significance level criteria.

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Definitions:

Force Majeure Clause

A contractual provision that relieves the parties from fulfilling their obligations when certain circumstances beyond their control occur, making performance inadvisable, commercially impracticable, illegal, or impossible.

Unforeseeable Occurrence

An event that cannot be predicted and is beyond the control of the parties involved, oftentimes relieving them from contractual obligations due to impossibility.

Regional Legislatures

Government bodies responsible for making laws within specific geographical areas smaller than the national level, such as states or provinces.

Trade Barriers

Measures implemented by countries to regulate or restrict international trade, such as tariffs and quotas.