Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity of minivans. People decide to have more children. A strike by steelworkers raises the prices. Engineers find a new automated machinery. The price of midsize cars increases. A stock market crash lowers people’s wealth.
Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the price and quantity of minivans. People decide to have more children. A strike by steelworkers raises the prices. Engineers find a new automated machinery. The price of midsize cars increases. A stock market crash lowers people’s wealth.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 13P
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- Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. Then draw a diagram to show the effect on the
price and quantity of minivans.
- People decide to have more children.
- A strike by steelworkers raises the prices.
- Engineers find a new automated machinery.
- The price of midsize cars increases.
- A stock market crash lowers people’s wealth.
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