Question

According to the Law of Demand, what do you expect to happen in the car market as the price of automobiles goes up?

Answer 1

Quantity supplied will increase. If two goods are complements, an increase in the price of one good will cause a decrease in the demand

Answer 2

According to the Law of Demand, if the price of automobiles goes up, the car market will suffer a slump period because the sales of the cars will go down. This means that the car market will face losses or will not be able to sell many cars.

Step-by-step explanation:

The Law of Demand is a basic law of economics that states that when the "price of a commodity increases", its demand decreases provided that all other conditions are equal and when the "price of a commodity decreases", its "demand will increase".