Consider the market for minivans. For each of the events listed, identify which of the determinants of demand are affected. Use the demand and supply diagram to identify the effects of this change on the equilibrium price and quantity exchanged of minivans. A recession reduces average family income. Because of an autoworker strike, people believe that the price of minivans will rise in the future.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter3: The Market And Price System
Section: Chapter Questions
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Consider the market for minivans. For each of the events listed, identify which of the determinants of demand are affected. Use the demand and supply diagram to identify the effects of this change on the equilibrium price and quantity exchanged of minivans.

  1. A recession reduces average family income.
  2. Because of an autoworker strike, people believe that the price of minivans will rise in the future.
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