Assume the following events are taking place simultaneously: the prices of gasoline rises, commuting by train becomes more affordable and more comfortable, the price of steel falls, automobile insurance premium increases, and auto-workers' wages decreases. What would happened to the equilibrium price of new cars if new cars are normal goods? Price will fall. Price will stay exactly the same. Price will rise. The price change will be ambiguous. a. b. C. d. A a B b © C D d
Assume the following events are taking place simultaneously: the prices of gasoline rises, commuting by train becomes more affordable and more comfortable, the price of steel falls, automobile insurance premium increases, and auto-workers' wages decreases. What would happened to the equilibrium price of new cars if new cars are normal goods? Price will fall. Price will stay exactly the same. Price will rise. The price change will be ambiguous. a. b. C. d. A a B b © C D d
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Assume the following events are taking place simultaneously: the prices of gasoline rises, commuting by train becomes more
affordable and more comfortable, the price of steel falls, automobile insurance premium increases, and auto-workers' wages
decreases. What would happened to the equilibrium price of new cars if new cars are normal goods?
Price will fall.
a.
b.
C.
d.
A
B
D
Price will stay exactly the same.
Price will rise.
The price change will be ambiguous.
a
b
с
d](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F125111cc-25a5-4f05-886d-ef1bfa459fc8%2F30ea73ca-7319-49fa-955f-c12b0cd47ebc%2Fi0f3y0u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume the following events are taking place simultaneously: the prices of gasoline rises, commuting by train becomes more
affordable and more comfortable, the price of steel falls, automobile insurance premium increases, and auto-workers' wages
decreases. What would happened to the equilibrium price of new cars if new cars are normal goods?
Price will fall.
a.
b.
C.
d.
A
B
D
Price will stay exactly the same.
Price will rise.
The price change will be ambiguous.
a
b
с
d
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