Question
Q// For each of the following changes in the demand or supply curves in the automobile market below, draw a graph showing the old demand
Q// For each of the following changes in the demand or supply curves in the automobile market below, draw a graph showing the old demand and supply curves as well as the new demand or supply curve (whichever shifts). Also show how the equilibrium price and equilibrium quantity change.
Please show your work on 6 different graphs. Also, please be neat. Thank you!
1/ The income of consumers rises and automobiles are considered a normal good.
2/ Over time, and due to new resource discoveries, gasoline prices fall.
3/ The availability and price of public transportation falls.
4/ With lower trade barriers, foreign automakers export more cars to the U.S.
5/ U.S. automobile workers unionize.
6/ Due to research and development (R&D), new technologies enable automakers to produce cars much faster.
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