The price of large automobiles rises (with the price of small autos remaining the same):

What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?a. Small automobiles become more fashionable. b. The price of large automobiles rises (with the price of small autos remaining the same). c. Income declines and small autos are an inferior good. d. Consumers anticipate that the price of small autos will greatly come down in the near future. e. The price of gasoline substantially drops.

When the quantity of cars supplied is smaller than the quantity of cars demanded the market price of cars will tend to:1 pointIncreaseStay the sameDecreaseIncrease or decrease

If the price of cars falls, are carmakers likely to make ___________.more carsfewer cars

Which of the following identifies an upward economic trend:*2 pointsA. Businesses are using more computers.B. Sales in the auto industry are increasing.C. Businesses must meet stricter licensing requirements.D. The number of firms accused of price fixing is increasing

Use the following graphs to answer the next question.  For which graph are there economies of scale throughout the entire range of output of cars?