4.3 Describe how each of the following events would affect (1) demand for auto workers and (2) auto workers’ wages in the country of Astoria, home of the all-electric car, the Astro Galactica. Illustrate with supply and demand curves.

a. A sharp decrease in interest rates on new automobiles increases the demand for new automobiles.

b. The government of Astoria offers a 20 percent tax credit on the purchase of electric cars.

c. The Astorian economy falters, and the overall unemployment rate rises from 5 percent to 15 percent.

d. Gasoline prices fall by 30 percent, decreasing the