Assume new cars are normal goods. What will happen to the equilibrium price of new cars if public transportation becomes less expensive and the price of steel used in new cars rises? Price will rise, and the effect on quantity is ambiguous. Price will fall, and the effect on quantity is ambiguous. Quantity will fall, and the effect on price is ambiguous. Quantity will rise, and the effect on price is ambiguous.
Assume new cars are normal goods. What will happen to the equilibrium price of new cars if public transportation becomes less expensive and the price of steel used in new cars rises? Price will rise, and the effect on quantity is ambiguous. Price will fall, and the effect on quantity is ambiguous. Quantity will fall, and the effect on price is ambiguous. Quantity will rise, and the effect on price is ambiguous.
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 1WNG
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Assume new cars are normal goods. What will happen to the
Price will rise, and the effect on quantity is ambiguous. |
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Price will fall, and the effect on quantity is ambiguous. |
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Quantity will fall, and the effect on price is ambiguous. |
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Quantity will rise, and the effect on price is ambiguous. |
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