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

Question 161

Multiple Choice

Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line technology and (2) a recession in the economy that decreases consumers' income. Which of the following can be predicted about this market with certainty?


A) the equilibrium quantity will rise
B) the equilibrium quantity will fall
C) the equilibrium price will rise
D) the equilibrium price will fall
E) the equilibrium price will remain the same

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