1.A technological breakthrough in manufacturing renders Toyota's assembly line for cars more productive. Just as these changes are being implemented, Honda announces a $1,500 rebate on its cars.

Provide an explanation of the impact of these two events on the demand and supply for Toyota's cars, by doing the following:

a.Determine for each event whether Demand or Supply will be affected.

b.Name the category of Determinant causing the market to change.

c.Illustrate the changes due to these events in a graph.

d.As you determine a new equilibrium, answer:

i.What is the effect on quantity demanded and supplied?

ii.What is the effect on price?