If gas prices fell sharply, what would economists expect to happen in the market for fuel-efficient hybrid cars?

The correct answer is:  a decrease in the price and quantity of hybrid cars.

Explanation:

According to the Efficient Market Hypothesis (EMH), publicly-available information influence the asset's price movement. In that sense, if it is widely known that the gas prices will fall sharply, hybrid cars -fuel and electrical fueled cars, will see a fall in their price since the demand will increase. As implies fewer profits for a company, they are likely to produce fewer units of those types of vehicles.