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1. Assume that Louisville {e.g. Jefferson County} has a market for rental cars {c.g. Budget Car Rental, Avis, etc}. Car rental firms in southern Indiana,
1. Assume that Louisville {e.g. Jefferson County} has a market for rental cars {c.g. Budget Car Rental, Avis, etc}. Car rental firms in southern Indiana, Dldham County and Bullitt County are separate markets. Note that this market is not the same market as the ride-sharing market {e.g. Uher, Lyft, etc]. In this question, you*ll analer the car rental market in. Louisville {i.e. we will be trying to predict how this Louisville market is affected by various events}. Below, you must determine how each of the different events below will affect this market in terms of causing a shift or shifts in the demand and supply for car rentals in Louisville. Match each event below with the appropriate shift{s}. E.g., if you believe that the rst event causes a decrease in Demand within the Louisville car rental market, then your answer would be \"H\". Events: a. Increase in taxes on the suppliers of car rentals within the Louisville market 11 Price competition within airline fares signicantly lowers the price of ying c. The economy slides into recession and lower incomes for most households in Louisville d. Federal govemment legislation leads to some car rental fums leaving the Louisville market e. Automation {technological change} occurs within the car rental market f. Car rental employees in Louisville receive an increase in their wage Effect: Shift in Curv 5 within te Louisville car rental market A. Increase {shift right} in Demand for Louisville car rentals E. Decrease {shift 1e ft] in Demand for Louisville car rentals C. Increase {shift right} in Supply of Louisville car rentals D. Decrease {shift left] in Supply of Louisville car rentals E. Increase {shift right} in Demand for Louisville car rentals an_d Increase {shift right} in Supply of Louisville car rentals F. Decrease {shift left} in Demand for Louisville car rentals l Decrease {shift left} in Supply of Louisville car rentals G. Increase {shift right} in Demand for Louisville car rentals an_d Decrease {shift left] in Supply of Louisville car rentals II. Decrease {shift left] in Demand for Louisville car rentals an_d Increase {shift right] in Supply of Louisville car rentals
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