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Automobile firms can use their inputs to make hybrid cars or "regular" (non-hybrid) cars. If the equilibrium price of hybrid cars rises sharply, the resulting shift in the supply curve for "regular" cars will cause:
a. an increase in the equilibrium price of "regular" cars
b. a decrease in the equilibrium price of "regular" cars
c. an increase in the equilibrium quantity of "regular" cars
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Answers: 2
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Automobile firms can use their inputs to make hybrid cars or "regular" (non-hybrid) cars. If the equ...
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