By 2020, automobile market analysts expect that the demand for electric autos will increase as buyers become more familiar with the technology
However, the costs of producing electric autos may increase because of higher costs for inputs (e.g., rare earth elements), or they may decrease as the manufacturers learn better assembly methods (i.e., learning by doing). What is the expected impact of these changes on the equilibrium price and quantity for electric autos?
A) Unambiguously higher equilibrium price and quantity
B) Unambiguously higher price, and equilibrium quantity may be higher or lower
C) Unambiguously higher quantity, and equilibrium price may be higher or lower
D) We cannot form any unambiguous expectations for either price or quantity
D
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Unequal pay that is caused by economic discrimination will be due to
A) a noneconomic factor. B) differences in the marginal revenue product. C) a monopolistic labor market. D) difference in human capital.
If workers expect inflation, and negotiate wage increases that exactly match price increases, the result is a
A. horizontal aggregate supply curve at the level of potential GDP. B. vertical aggregate supply curve at the level of potential GDP. C. horizontal aggregate demand curve at the level of potential GDP. D. vertical aggregate demand curve at the level of potential GDP.
Exhibit 2-1 Production possibilities curve data ConsumptionGoods CapitalGoods 10 0 9 1 7 2 4 3 0 4 In Exhibit 2-1, according to the information, the opportunity cost of producing the 3rd unit of capital is:
A. 3 units of consumption goods. B. 4 units of consumption goods. C. 6 units of consumption goods. D. 7 units of consumption goods.
Discuss the determinants of a nation's exchange rate value for its currency in foreign exchange markets. What happens to a nation's balance of trade if the nation's currency appreciates? Why?
What will be an ideal response?