Question

Economie 101/102 Exam 1 - Practice Problems SBCC 2. Supply and Demand Suppose we are analyzing the market for electrie vehicles. Illustrate the impact of each of the following using a supply demand diagram. Be sure to label everything and show what happens to equilibrium price and equilibrium quantity. Be sure to state which specific shifter les affected (if any) and any necessary additional resumptions--for example inferior good, complementa, input price, etc.-If necessary. It is not enough to simply state that demand changed or supply changed, you must identify the specific shifter. Assume each question is independent of the rest unless stated otherwise (a) The automobile industry workers go on strike and ultimately negotiate better wages. Shifter and/or sumption: (b) There is an increase in the price of gas-powered vehicles Shifter and/or assumption:

Answer 1

Quant price of Input antity supply also falls, the lises Pit esi sa Equilibrium e r & change Lebrium Ei= &qu ND S = original Supply ů a si= change in Supply P = Change in price, Q = Charge in Quantity e price ceiling - It refers to govt Bet a price lower than equilibrium Therefore no produces can sell the vehicle at higher price $25000 - Drilu REDMI NOTE 6 PRO MI DUAL CAMERA

SS on X-axes we - measure quantity on y-axis we measure a so when price of wages euses, supply ereduces Quantity An Increase in waxes will reduce profitability of the manufacture and will reduce supply at current price. 55 Supply Curve DD- Demand curve OO RED REDMI NOTE 6 PRO MI DUAL CAMERA

00-00 price P DD, DD H it is posible only substitute goods (ges Powdered vehicle o Quantity or electric Vehic an increase in price of gas powered vehicle will iRulease the demand for electric vehicles hence demand curre will Shift to right: o REDMI NOTE 6 PRO MI DUAL CAMERA

c) decorati con la ley electric We (Input) ↑ Supply Increase I Do s sit supply 9 electric When price of Input (balterus) sells the supply o I vehicles will luses Atenco Demand Due to Increase in the price of ssubstitute good like gas vehicle, ou électric vehicle. shen the priced gas vehicle rise The demand for Electric vehicle Current rises REDMI NOTE 6 PRO MI DUAL CAMERA