For each of the following four situations, determine if it is the demand or the supply of autos that is affected by the change. Use the demand and supply diagram to identify the effects of this change on the equilibrium price and quantity exchanged of autos. Increase in the price of gas  a recession reduces average incomes

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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For each of the following four situations, determine if it is the demand or the supply of autos that is affected by the change. Use the demand and supply diagram to identify the effects of this change on the equilibrium price and quantity exchanged of autos.

    1. Increase in the price of gas 
    2. a recession reduces average incomes 
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