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Automobiles Are Considered a Normal Good

Question 80

Multiple Choice

Automobiles are considered a normal good. Incomes decline as the economy enters a recession. As a result, we expect the equilibrium price:


A) and quantity of automobiles to increase.
B) and quantity of automobiles to decrease.
C) to increase and quantity of automobiles to decrease.
D) to decrease and quantity of automobiles to increase.

Correct Answer:

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