Suppose vans and sport utility vehicles are viewed by consumers to be substitutes.A safety report is released that contends that sport utility vehicles are prone to roll over during crashes.At the same time, the price of steel (used to produce motor vehicles) increases.The net effect of these two incidents on the market for sport utility vehicles is a(n) :
A) decrease in price and an increase in equilibrium quantity.
B) decrease in price and a decrease in equilibrium quantity.
C) increase in price and a decrease in equilibrium quantity.
D) indeterminate change in price and a decrease in equilibrium quantity.
E) decrease in price and an indeterminate change in equilibrium quantity.
Correct Answer:
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