Question

16 Crude oil is an input used in the production of gasoline. It is also an input used in producing plastic that is used in producing automobile parts. Suppose there is a large increase in the price of crude oil due to changes in market supply. What are the anticipated effects on the equilibrium quantity and price for automobiles that use gasoline? A. The market quantity will decrease and the market price will decrease. B. The market price will decrease and the market quantity could increase, decrease, or remain the same. C. The market quantity will decrease and the market price could increase, decrease, or remain the same D. The market quantity will decrease and the market price will increase E. The market quantity will increase and the market price could increase, decrease, or remain the same.