Given that diesel cars get much better gas mileage than the typical car, an increase in the price of gasoline would be expected to:
A) decrease the equilibrium price and increase the equilibrium quantity of diesel cars.
B) increase the equilibrium price and decrease the equilibrium quantity of diesel cars.
C) decrease the equilibrium price and quantity of diesel cars.
D) increase the equilibrium price and quantity of diesel cars.
Correct Answer:
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