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When Gasoline Prices Fall, the Demand for Alternative Fuel Cars

Question 5

Multiple Choice

When gasoline prices fall, the demand for alternative fuel cars likely:


A) falls, lowering their equilibrium price and raising equilibrium quantity.
B) rises, raising their equilibrium price and quantity.
C) falls, raising their equilibrium price and lowering equilibrium quantity.
D) falls, lowering their equilibrium price and quantity.

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