Question

Learning Activity 3 The following events listed below has an impact on the market for Car. For cach event, which curve is affected (supply or demand for Car) , what direction is it shifted, and what is the resulting impact on equilibrium price and quantity of Car? (Draw graph for each event) Questions 1. The price of car decrease in the market 2. The price of steel used to make car frames increases. 3. An environmental movement shifts tastes toward bicycling. 4. Consumers expect the price of car to fall in the future. 5. A technological advance in the manufacture of car occurs. Pearson Copyright2017 Pearson Inc 3 - 6

Answer 1

classmate • An environmental movement lades shifts Date Page towards cycling so demand for cars decreases demand curve stift to left to s 2 S p* P E Q Equilibrium price decreases Equilibrium quantity decreases. Qu', price to fall in future expectation leads to current demand decreases demand curre shift to left agani equilibrium price decreases and equilibrium quantity too (Graph is same as above eve] decrease Scanned by TapScanner