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A manufacturer of gasoline powered automobiles has anticipated changes in the market and is assessing the effects of these changes on equilibrium price and quantity.
A manufacturer of gasoline powered automobiles has anticipated changes in the market and is assessing the effects of these changes on equilibrium price and quantity. For each anticipated change presented below, select from the option lists provided the appropriate effect on equilibrium price and quantity of the manufacturer's products. Each choice may be used once, more than once, or not at all. Anticipated change Effect on equilibrium price Effect on equilibrium quantity 1. The manufacturer installs advanced machines to expand capacity by automating the production process. 2. Prices of automobiles decrease in the following year. 3. Transportation costs for steel E increase. 4. Car dealers sell their cars at E E lower markups in the last quarter to boost sales. 5. The government increases the E subsidy for electric cars. 6. A trade war between the company's home country and another country results in higher import duties on materials and higher export duties on cars.
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