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What Will Happen to the Equilibrium Price and Quantity of Gasoline

Question 227

Multiple Choice

What will happen to the equilibrium price and quantity of gasoline powered lawnmowers if the prices of battery powered lawnmowers goes down and, at the same time, firms switch from producing gasoline powered lawnmowers to producing battery powered lawnmowers?


A) price will fall and the effect on quantity is ambiguous
B) price will rise and the effect on quantity is ambiguous
C) quantity will fall and the effect on price is ambiguous
D) quantity will rise and the effect on price is ambiguous

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