II. In the following situations evaluate what happens to supply or demand for domestically produced new cars and how this affects the equilibrium price and quantity exchanged. First analyze which curve(s) are affected and in which direction it shifts. Then state what happens to the price and quantity of new cars. Hint: you may find it helpful to graph the shifts in order to determine how price and quantity are affected. curve price quantity 1. Trade restrictions raise the price of foreign produced cars. 2. Workers at domestic car manufacturer plants are able to negotiate higher wages. 3. Banks are offering easier access to loans at lower interest rates. 4. Car pooling becomes more popular as an advertising campaign promoting environmental responsibility is released. 5. Income levels fall as many lose their jobs in the current recession. Assume new cars are a normal good