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6. The market for Sports Utility Vehicles (SUVs) is in equilibrium. For each of the following scenarios, draw one diagram for each scenario explaining what

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6. The market for Sports Utility Vehicles (SUVs) is in equilibrium. For each of the following scenarios, draw one diagram for each scenario explaining what happens to supply and/or demand, price, and quantity. Make sure you write your explanations next to the diagrams stating which non-price factor was considered for shifts and why, and state the final conclusions for P and Q clearly. (15 marks) a) The price of SUVs falls b) Wages paid to labor in the auto industry fall and people switch to more fuel-efficient vehicles c) Auto manufacturers expect prices of SUVs to rise in future d) The price of minivans (a competitor to SUVs) rises and there is a general labor strike in the auto industry

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