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. People decide to have more children. The price of station wagons rises.

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
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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. People decide to have more children.
  2. The price of station wagons rises.
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