For each of the examples, suppose we are examining the US market for electric-powered automobiles. Assume that in each of these examples, the US market for electric autos is in equilibrium at Q1, P1. Simply graph how equilibrium changes in each scenario. Be sure to label your new curve(s)

appropriately and label your new point of equilibrium as Q2, P2.

a) Due to a recession, consumers' incomes fall.

b) Concern for the environment among consumers causes consumers to substitute away from traditional autos to electric-powered autos.

c) The prices of traditional autos fall.

d) The US government gives subsidies to electric car manufacturers to partially offset the high cost of producing such cars.

e) Electric-powered car manufacturers expect demand to surge in 3 years. As a result, these manufacturers cut back production this year. Show the impact on the market today.

f) A year from now, electric-powered car manufacturers will increase their production by 3%. At the same time, demand for these autos increases by 2%.