QUESTION IMAGE
Question
if the number of firms producing electric cars increases and consumer preference for ele
cars will definitely increase.
○ true
○ false
question 22
figure 3-8
price
s₂
s₁
b
e
a
c
d₁
d₂
0
quantity
First Question (about electric cars)
An increase in the number of firms producing electric cars affects the supply (shifting supply curve right), while consumer preference affects demand. The equilibrium quantity's change depends on both supply and demand shifts. If only supply increases (from more firms) and we don't know demand's change (the problem's “consumer preference for elec[tric] cars” part is cut off, but assuming it's about quantity: if supply increases and demand could be unchanged, or if demand also changes, we can't say quantity “definitely” increases? Wait, no—wait, the original question (maybe typo: “cars will definitely increase” – maybe equilibrium quantity? Wait, no, the first question: “If the number of firms producing electric cars increases and consumer preference for electric cars... (maybe the question is about equilibrium quantity? But the user's text: “If the number of firms producing electric cars increases and consumer preference for ele cars will definitely increase.” Wait, maybe the question is: “If the number of firms producing electric cars increases (supply shift right) and consumer preference for electric cars increases (demand shift right), will the equilibrium quantity definitely increase?” Wait, no, the original text: “If the number of firms producing electric cars increases and consumer preference for ele cars will definitely increase.” Wait, maybe the question is misphrased, but likely: an increase in number of firms (supply increases, \( S \) shifts right) and consumer preference (demand increases, \( D \) shifts right). The equilibrium quantity is determined by both. But if both supply and demand increase, the quantity will definitely increase (since both shifts push quantity up, even if price is ambiguous). Wait, no—wait, the first question's options: True or False. Wait, maybe the question is: “If the number of firms producing electric cars increases, the equilibrium quantity of electric cars will definitely increase.” But that's not true, because demand could decrease. But the user's text says “and consumer preference for ele cars will definitely increase” – maybe a typo, like “If the number of firms producing electric cars increases and consumer preference for electric cars increases, will the equilibrium quantity definitely increase?” In that case, when supply (S) shifts right (more firms) and demand (D) shifts right (consumer preference), the equilibrium quantity is the sum of the two shifts: both S and D increasing lead to quantity increasing (since S shift right increases quantity, D shift right increases quantity). So the answer would be True? Wait, no—wait, maybe the original question is: “If the number of firms producing electric cars increases, the equilibrium quantity of electric cars will definitely increase.” But that's false, because demand could fall. But the user's text has “and consumer preference for ele cars will definitely increase” – maybe the question is: “If the number of firms producing electric cars increases and consumer preference for electric cars increases, the equilibrium quantity of electric cars will definitely increase.” In that case, yes, because both supply (more firms: S right) and demand (preference: D right) shifts. The quantity from S shift: at original price, quantity supplied increases; from D shift: at original price, quantity demanded increases. So the new equilibrium quantity is higher than original. So the answer is True? Wait, no—wait, maybe the question is miswritten, and the “and consumer preference...” is part of the condition. Wait, the user's text: “If the number of firms produ…
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
True