16. Suppose over the next 10 years the technology associated with producing electric cars advances greatly while the number of buyers in the market increases only slightly. This would mean that: The price of electric cars would continue to fall.The price of electric cars would not change but quantity would increase.Quantity supplied would rise, prices would fall, and demand would increase due to the falling prices.The price of gas-powered cars would fall.A and D only.

Equilibrium in the market is reached where quantity demanded is equal to quantity supplied.

Answered: Suppose over the next 10 years the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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16. Suppose over the next 10 years the technology associated with producing electric cars advances greatly while the number of buyers in the market increases only slightly. This would mean that:

The price of electric cars would continue to fall.
The price of electric cars would not change but quantity would increase.
Quantity supplied would rise, prices would fall, and demand would increase due to the falling prices.
The price of gas-powered cars would fall.
A and D only.

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