Author Question: What is the effect of a reduction in the price of steel on the equilibrium price and quantity of ... (Read 23 times)

javeds · **on:** Jul 1, 2018

What is the effect of a reduction in the price of steel on the equilibrium price and quantity of automobiles?
a. Both equilibrium price and equilibrium quantity rise.
b. Both equilibrium price and equilibrium quantity fall.
c. Equilibrium price rises and equilibrium quantity falls.
d. Equilibrium price falls and equilibrium quantity rises.
e. Both equilibrium price and equilibrium quantity remain unchanged.

Question 2

Which of the following would shift the supply curve for CDs to the right?
a. a decrease in the price of materials used to make CDs
b. a rise in the cost of labor used to make CDs
c. an increase in the price of audio cassettes
d. a decrease in the number of suppliers
e. an increase in the price of CDs