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Suppose That the Price for Fully Electric Cars Made by Toyota

Question 56

Multiple Choice

Suppose that the price for fully electric cars made by Toyota increases.The quantity of fully electric cars supplied in the market will


A) increase, because Toyota would be willing to sell more fully electric vehicles.
B) decrease, because Toyota believes that to maintain the higher prices, it must sell a smaller quantity.
C) increase, because other auto manufacturers would want to enter the market and also sell fully electric vehicles.
D) Both A and C are correct.

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