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New Cars Are Normal Goods

Question 53

Multiple Choice

New cars are normal goods.Suppose consumer incomes fall, and public transportation becomes cheaper and more comfortable.All things being equal, what will happen to the equilibrium price of new cars?  


A)  It would rise. 
B)  It would fall. 
C)  It would stay the same. 
D)  It could either rise or fall.

Correct Answer:

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