Considers the graph that represents the supply and demand in the market for automobiles. for each of the following events, draw the new market outcome, and say whether the equilibrium price and quantity will increase or decrease. always begin with the market at the original equilibrium. make sure you label your curves properly.
a. environmentalists launch a successful one family, one car campaign.
b. a steel tariff increases the price of steel.
c. a baby boom occurred 16 years ago.
d. an oil shortage causes the price of gasoline to soar.
e. improvements in robotics increase efficiency and reduce costs.
f. the government offers a tax rebate for the purchase of commuter rail tickets.