We'll learn later on in the course that household wealth affects household spending decisions. Specifically, if a household perceives that it has more wealth, it is inclined to spend more on goods and services, even if it has not realized those wealth gains. A good example? Home prices. If, say, the value of your home doubles, you feel wealthier, even though you've not sold your home and realized the gain. All else equal (ceteris paribus), i.e., holding every other variable constant, what might we expect to happen to the equilibrium price (P*) and quantity (Q*) sold of new cars down the road, given that stock prices fell 20% last year? Question 6 options: a) P* rises; Q* falls b) P* falls; Q* rises c) P* rises; Q* rises d) P* falls; Q* falls