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 twoevents on the demand and supply for Toyota'scars, by doing the following:

1. Determine for each event whether Demand or Supply will be affected.
2. Name the category of Determinant causing the market to change.
3. Illustrate the changes due to these events in a graph.
4. As you determine a new equilibrium, answer:
5. What is the effect on quantity demanded and supplied?

What is the effect on price?