Referring to the previous question, what will happen to the equilibrium price and quantity of cars?
A) They will stay the same as domestic producers replace the cars once imported.
B) The shortage will cause the equilibrium price to increase and equilibrium quantity will decrease.
C) The surplus will cause equilibrium price to decrease and equilibrium quantity to increase.
D) The shift in the demand curve will cause equilibrium price to increase and quantity to increase.
B
You might also like to view...
The above table shows the market shares for all the landscaping services in a suburban area. A merger between firms E and F would
A) raise the four-firm concentration ratio. B) have no effect on the four-firm concentration ratio. C) lower the four-firm concentration ratio. D) create a monopoly.
The faster the rate of technological progress: a. the greater the rate of economic growth
b. the slower the rate of economic growth. c. the greater the rate of population growth. d. the slower the rate of growth of the money supply.