Two Events Occur Simultaneously in the Market for Automobiles: (1)an

Multiple Choice

Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line technology and (2) a recession in the economy that decreases consumers' income.Which of the following can be predicted about this market with certainty?

A) Equilibrium quantity will rise.
B) Equilibrium quantity will fall.
C) Equilibrium price will rise.
D) Equilibrium price will fall.
E) Equilibrium price will remain the same.