For each of the following situations, use supply and demand curves and a written description to explain the effect on the market, including the changes in equilibrium price and quantity and any initial shift in either supply or demand.

a.The effect on the market for new automobiles if auto manufacturers must pay an increase in wages for auto workers.

P

Q

b.The effect on the market for air travel if high-speed rail at 300 km/hr is introduced.

P

Q

c.The effect on the market for Netflix if prices for satellite TV double.

P

Q

d.The effect on the market for wheat if farmers improve production efficiency with better equipment.

P