If the price of steel, an input into the production of automobiles, rises, and at the same time the price of gasoline rises, what will happen to the equilibrium price and quantity of automobiles

a decrease in equilibrium quantity

an indeterminate effect on equilibrium price.

Explanation:

An increase in the price of steel would raise the production cost of cars. as a result the supply curve would shift inwards or to the left. price would rise and quantity would fall.

A rise in the price of gasoline would increase the cost of fuelling one's car. As a result the demand for cars would fall. the demand curve would shift inward. Quantity and price would fall.

Taking these two effects together, there would be a decrease in equilibrium quantity but an indeterminate effect on equilibrium price.

Check the attached image for a diagram explaining the effects of these changes

answer founder's agreement;