Question 23A new car is typically considered to be a normal good. What would happen to theequilibrium price and quantity of new cars if there is a recession where many peoplelose their jobs?The equilibrium price would fall and the equilibrium quantity would rise as demand shifts tothe right.There would be no change to the equilibrium price or quantity.O The equilibrium price would rise and the equilibrium price would fall as demand shifts to theleft.The equilibrium price and quantity would both fall as demand shifts to the left.O The equilibrium price and quantity would both rise as demand shifts to the right.

Answer The correct option is (d) The Equilibrium price and quantity would both fall as demand shifts…

Answered: The equilibrium price and quantity…

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Economics

The equilibrium price and quantity wwould both rise as demand shifts to the right

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

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