Consider the market for ride-on lawn mowers and the recent increases in the price of oil. The
recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers.
An increase in the price of oil also makes it more expensive to run a ride-on mower. What is
likely to happen to equilibrium price and quantity of lawn mowers as a result in the changing
price of oil?
A. Supply and demand will both increase, increasing equilibrium quantity and having an
indeterminate effect on price.
B. Supply and demand will both decrease, decreasing equilibrium quantity and having an
indeterminate effect on price.
C. Supply and demand will both increase, increasing equilibrium price and having an
indeterminate effect on quantity.
D. Supply and demand will both decrease, increasing equilibrium price and having an
indeterminate effect on quantity
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