Author Question: What happens to the equilibrium price and quantity of automobile tires if rubber prices increase and ... (Read 352 times)

imowrer · **on:** Jun 29, 2018

What happens to the equilibrium price and quantity of automobile tires if rubber prices increase and the price of automobiles falls?

A) The equilibrium price rises, but the change in equilibrium quantity is unknown.
B) The equilibrium price and quantity decrease.
C) The equilibrium price falls, but the change in equilibrium quantity is unknown.
D) The equilibrium price and quantity increase.
E) The equilibrium quantity decreases, but the change in equilibrium price is unknown.

Question 2

Points inside the PPF are all

A) unaffordable.
B) attainable and have some unemployed resources.
C) unattainable and have some unemployed resources.
D) attainable and have fully employed resources.
E) unattainable and have fully employed resources.