Equilibrium: End of Chapter Problem

a$.$ Due to supply chain issues resulting from the global pandemic, the prices of computer chips increased greatly, and delivery of computer chips was often delayed. How did this likely affect the supply of new cars?

The supply of new cars due to the costs of production.

b$.$ Given your answer to part a$,$ what was the likely knock$-$on effect in the demand for used cars?

The prices of new cars the demand for used cars, as they are goods.

c$.$ Rental car companies are a major supplier of used cars, as they sell some of their fleet each year and replace them with new vehicles. In anticipation of high new car prices $($and their potential unavailability$),$ many rental car companies chose