Two Events Occur Simultaneously in the Market for Automobiles: (1)an

question 159

Multiple Choice

Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line technology and (2) the economy enters a recession (which decreases consumers' income) .An economist would predict with certainty that

• A)equilibrium quantity will rise
• B)equilibrium quantity will fall
• C)equilibrium price will rise
• D)equilibrium price will fall
• E)the equilibrium price will remain the same

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Definitions:

Trial Stage

A phase in the product adoption process where consumers first use a product on a limited basis to assess its value.

Innovation Stage

The phase in the product life cycle where a new product is introduced to the market and begins to grow in acceptance and use.

Promotion Objectives

Goals a company aims to achieve through its promotional activities, such as increasing brand awareness or boosting sales.

Specified Time Period

A defined interval of time, often set for a particular purpose or event.