Use the following to answer questions :
Figure 3-3
-Assume that automotive workers strike and the technological improvements occur at the same time.If initial market conditions were reflected by the structure of Figure 3-3, which of the following must occur?
A)Lower prices.
B)Less quantity.
C)More quantity.
D)Higher prices.
E)Cannot be determined from the given information.

Question

Use the following to answer questions :
Figure 3-3 
-Assume that automotive workers strike and the technological improvements occur at the same time.If initial market conditions were reflected by the structure of Figure 3-3, which of the following must occur?
A)Lower prices. 
B)Less quantity. 
C)More quantity. 
D)Higher prices. 
E)Cannot be determined from the given information.

Quizplus · Accepted Answer

The effects of an automotive workers strike (which would likely decrease supply) and technological improvements (which would likely increase supply) on the market could counterbalance each other in various ways, affecting prices and quantities in unpredictable manners. Without specific information on the magnitude of these changes, it's impossible to determine the net effect on prices and quantities.

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