Read the article from the Wall Street Journal "Manufacturers Could Face Demand Woes on Top of Supply Snarls" (attached with the Midterm)

a. Based on the information in the article, draw a supply and demand graph that illustrates what is happening in the market for new cars (demand remains strong) and appliances (demand starts to wane). Make sure to label your graphs and briefly explain any shifting of curves and/or changes in prices and quantities.

b. What will happen to the total revenue of car makers? What happened to revenue of companies in the food service sector, hotels and motels industry in the first quarter? How do supply elasticities and demand elasticities influence your answer? Explain. (You may assume that supply and demand are linear)

c. Based on your analysis, compare the impacts of this supply-chain issue and demand waning on the following: consumers, firms, and workers in the appliances market. Who is impacted the most? (Think analytically about prices, quantities, and take into account any mitigating responses by the affected groups.)