Consider the market for minivans. For each of the events listed below, draw the supply and demand model for the market, then identify whether supply or demand increases or decreases, and the resulting effect on price and quantity. Be sure to label your axes.

Scenario 1: People decide to have more children.

Scenario 2: A strike by steelworkers raises the price of steel

Scenario 3: Engineers develop new automated machinery to make minivans

Scenario 4. The price of Sport Utility Vehicles (SUVs) rises.

Scenario 5: The stock market does well, increasing consumers' wealth.

Because bagels and cream cheese are often eaten together, they are complements. Milk is used to make cream cheese, and flour to make bagels.

6. If the equilibrium price of cream cheese and the equilibrium quantity of bagels both go down, what could be a cause of this?

1. a rise in the price of milk
2. a rise in the price of flour
3. a fall in the price of milk
4. a fall in the price of flour
5. none of the above options could cause this.

7. If the equilibrium quantity of cream cheese and the equilibrium quantity of bagels both go up, what could be a cause of this?

1. a rise in the price of milk
2. a rise in the price of flour
3. a fall in the price of flour
4. none of the above options could cause this.

8. If the equilibrium price of cream cheese and the equilibrium price of bagels both go down, what could be a cause of this?

1. a rise in the price of milk
2. a rise in the price of flour
3. a fall in the price of milk
4. a fall in the price of flour
5. none of the above options could cause this.