Elements of Micro Date: 6/4/2013 Exercise #3: Market equilibrium and efficiency 1. Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand and/or supply are affected, and indicate the effect on the supply and/or demand curve for minivans. Using the supply-and-demand diagrams show the effect on the price and quantity of minivans and discuss the effect on the consumer and producer surplus. a) People decide to have more children. b) An earthquake destroys half of the nation's resources. c) During a financial crisis the price of steel falls sharply while at the same time a stock- market crash lowers people's wealth. d) Due to unrest in the Middle East, the price of gas doubles