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Assume the costs of production in the U.S. auto industry are rising and, at the same time, the ...

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Assume the costs of production in the U.S. auto industry are rising and, at the same time, the ...

Assume the costs of production in the U.S. auto industry are rising and, at the same time, the prices of Japanese-made autos are decreasing. What would reasonably be expected to happen to the equilibrium price and quantity of U.S.-made autos?
A) Price will increase; quantity cannot be determined.
B) Price will decrease; quantity cannot be determined.
C) Quantity will increase; price cannot be determined.
D) Quantity will decrease; price cannot be determined.

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Economics for Managers

Edition: 3^rd

Author: Farnham

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University of Ottawa - Economics for Managers

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Thank you, thank you, thank you!

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