Consider the market for automobiles in Kuala Lumpur, Malaysia during the period of January 2015. Using a supply and demand graph, determine the effect of the following events on the equilibrium price and quantity of automobiles market in KL:

i.The price of petrol goes down.

(2 marks)

ii.Consumers expect that the price of automobiles will go up due to the impending goods and services tax (GST) to be launched in April 2015.

(2 marks)

iii.The price of steel (an input in the production of cars) goes up.

(2 marks)

iv.The mayor of Kuala Lumpur announces a new 'No Car' campaign restricting the use of cars in Kuala Lumpur every Monday to Friday from 7am-10am. At the same time, a special technology in theautomobileproductionshortens the assembly time by one-third of the original time.

(4 marks)