Consider the market for minivans. For each of the events listed below, draw a diagram separately to show the effect on the price and quantity of minivans. Please state exactly what will happen to the equilibrium price and quantity. Remember that it is important to identify which side of the market (demand or supply) is affected and what is direction of the shift. Please be clear in your answers. a) People decide to have more children. b) A strike by steelworkers raises the price of steal. c) Engineers find a new automated machinery. d) The price of midsize cars increases. e) A stock market crash lowers people's wealth.

Consider the market for minivans. For each of the events listed below, draw a diagram separately to show the effect on the price and quantity of minivans. Please state exactly what will happen to the equilibrium price and quantity. Remember that it is important to identify which side of the market (demand or supply) is affected and what is direction of the shift. Please be clear in your answers. a) People decide to have more children. b) A strike by steelworkers raises the price of steal. c) Engineers find a new automated machinery. d) The price of midsize cars increases. e) A stock market crash lowers people's wealth.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 10P

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