Assume new cars are normal goods. What will happen to the equilibrium price of new cars if price of gasoline falls and the price of steel used in cars falls? Price will fall, and the effect on quantity is ambiguous. Quantity will rise, and the effect on price is ambiguous. Quantity will fall, and the effect on price is ambiguous. Price will rise, and the effect on quantity is ambiguous. O O O O

Assume new cars are normal goods. What will happen to the equilibrium price of new cars if price of gasoline falls and the price of steel used in cars falls? Price will fall, and the effect on quantity is ambiguous. Quantity will rise, and the effect on price is ambiguous. Quantity will fall, and the effect on price is ambiguous. Price will rise, and the effect on quantity is ambiguous. O O O O

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter4: Demand, Supply, And Markets

Section: Chapter Questions

Problem 6.11P

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Question 4 Assume new cars are normal goods. What will happen to the equilibrium price of new cars if price of gasoline falls and the price of steel used in cars falls? Quantity will rise, and the effect on price is ambiguous. 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.
A Moving to another question will save this response. Question 1 New cars are normal goods. What will happen to the equilibrium price of new cars if the price of gasoline falls and auto-workers receive lower wages? Quantity will rise, and the effect on price is ambiguous. Price will fall, and the effect on quantity is ambiguous. Price will rise, and the effect on quantity is ambiguous. Quantity will fall, and the effect on price is ambiguous. A Moving to another question will save this response. IDLLU 20 MacBook Air O O O
Question 29 The law of demand states that, other things equal, when the price of a good O falls, the demand for the good rises. O rises, the quantity demanded of the good rises. O rises, the demand for the good falls. O falls, the quantity demanded of the good rises.
Plot the supply curve and the demand curve for bicycles What is the equilibrium price of bicycles? What is the equilibrium quantity of bicycles? If the price of bicycles were €100, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to rise or fall ?