Consider the market for electrical cars. The price of gasoline increases and the cost of producing electrical car batteries rise. How will the market for electrical cars respond? a. prices will rise and the equilibrium quantity may or may not change.   b. prices will rise and the equilibrium quantity will increase.   c. prices will rise and the equilibrium quantity will decrease.   d. There is not enough information to answer the question

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
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Consider the market for electrical cars. The price of gasoline increases and the cost of producing electrical car batteries rise. How will the market for electrical cars respond?

a. prices will rise and the equilibrium quantity may or may not change.
 
b. prices will rise and the equilibrium quantity will increase.
 
c. prices will rise and the equilibrium quantity will decrease.
 
d. There is not enough information to answer the question
 
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