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

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An improvement in assembly line technology increases supply, which tends to lower prices. A recession decreases consumers' income, reducing demand, which also tends to lower prices. Both factors lead to a decrease in equilibrium price.

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