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Answer the following questions about the market for cars, assuming that the birthrate decreases. a) Show the effect by clicking and dragging the appropriate line(s)

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Answer the following questions about the market for cars, assuming that the birthrate decreases. a) Show the effect by clicking and dragging the appropriate line(s) in the graph below. Select which item you want to move from the drop down menu at the top of the graph to move that item. ' Supply 900 7'50 600 Price 450 300 150 Reset b) How will the equilibrium price be affected in a competitive market? 0 will always increase 0 will always decrease 0 remains the same c) How will the equilibrium quantity be affected in a competitive market? 0 will always increase 0 will always decrease 0 remains the same

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