Consider the relationship given by QCars = 100 + 4 × PCars - 2 × PSteel - 0.2 × PWorkers,where QCars is the quantity of cars supplied (in thousands) ,PCars is the price of cars (in thousands of dollars) ,PSteel is the price of steel,and PWorkers is the wage earned by autoworkers.What would be the impact of a $15 increase in the price of steel?
A) The quantity of cars supplied would decrease by 30,000 cars.
B) The quantity of cars supplied would increase by 30,000 cars.
C) The quantity of cars supplied would decrease by 7,500 cars.
D) The quantity of cars supplied would increase by 7,500 cars.
Correct Answer:
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