Explain what will happen to the equilibrium price and quantity of hybrid automobiles if there are technological advancements in the production of hybrid automobiles while at the same time consumer preference for hybrid automobiles increases
What will be an ideal response?
Technological advancements will cause supply to increase and increases in consumer preference will cause demand to increase. Equilibrium quantity will definitely increase. Equilibrium price will depend on whether the increase in supply or the increase in demand is larger. If the supply increase is larger than the demand increase, equilibrium price will decrease. If the demand increase is larger than the supply increase, equilibrium price will increase.
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a. an increase in aggregate wage income b. an increased mood of optimism about the nation's economic prospects c. an increase in the value of corporate stocks d. a decrease in the income tax rate e. an increase in the interest rate
Between 1993 and 2001 the U.S. economy experienced
a. relatively low inflation and unemployment rates. b. relatively high inflation and unemployment rates. c. relatively low inflation rates and relatively high unemployment rates. d. relatively high inflation rates and relatively low unemployment rates.
The political process might negatively affect government attempts to stabilize an economy by ______.
a. collecting policy information b. catering to special interests c. having a long-term view d. assisting local businesses