7. What effect will the following have on the market for small automobiles such as the MiniCooper and Fiat 500? Income declines and small autos are an inferior good. Does this change supply or demand? Which determinant was affected? Did it cause an increase of decrease? Label everything. Use my graph as a guide. Make sure you label the initial P and (land the resulting P and Q. Label axes clearly. What happens to the equilibrium price of small cars? What happens to the equilibrium quantity