Using your graphing document, select the graph that best demonstrates how both of the scenarios below will
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Using your graphing document, select the graph that best demonstrates how both of the scenarios below will impact the market for fuel-efficient cars in the short-run:
- There is increase in the cost of computer chips used in fuel-efficient cars to monitor gas mileage.
- Consumers have expectations that the price of gasoline will increase in the future.
Explain why you chose this graph to represent the impact in the market for fuel-efficient cars. What is the reason behind each shift/s?
Based on the graph you selected, what do you predict will happen to equilibrium price and quantity?
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