Question: 1 9 . Suppose there is a decrease in the U . S . selling price of Japanese - made cars ( a substitute for
Suppose there is a decrease in the US selling price of Japanesemade cars a substitute for Americanmade cars At the same time, the price of steel in the US used to make Americanmade cars decreases. What would we expect would happen in the market for Americanmade cars? The equilibrium price and quantity fall. The equilibrium price falls, but the effect on quantity is uncertain. The equilibrium quantity falls, but the effect on price is uncertain. The equilibrium quantity rises, but the effect on price is uncertain. The equilibrium price rises, but the effect on quantity is uncertain.
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