Answer:
Draw and Label Equilibrium:
In the initial equilibrium, the market for cars is in balance at a certain price and quantity. The intersection of the supply and demand curves represents the equilibrium point.
The Change:
a) When the average price of oil rises, the cost of production for car manufacturers increases. This will shift the supply curve to the left, leading to a decrease in quantity supplied and an increase in price.
Change: Supply Decrease, Quantity Decrease, Price Increase
b) When the workers who produce the cars go on strike for over two months, the supply of cars decreases. This will shift the supply curve to the left, leading to a decrease in quantity supplied and an increase in price.
Change: Supply Decrease, Quantity Decrease, Price Increase
c) When the average income in America falls by 10%, the demand for cars decreases. This will shift the demand curve to the left, leading to a decrease in quantity demanded and a decrease in price.
Change: Demand Decrease, Quantity Decrease, Price Decrease
d) When new studies show that having a new car helps with mental health, the demand for cars increases. This will shift the demand curve to the right, leading to an increase in quantity demanded and an increase in price.
Change: Demand Increase, Quantity Increase, Price Increase
e) When many new immigrants, many of whom are educated, move into America, the demand for cars increases. This will shift the demand curve to the right, leading to an increase in quantity demanded and an increase in price.
Change: Demand Increase, Quantity Increase, Price Increase
f) When the price of motorcycles, a product also produced by car producers, rises, this may cause some consumers to shift their demand from cars to motorcycles. This will shift the demand curve for cars to the left, leading to a decrease in quantity demanded and a decrease in price.
Change: Demand Decrease, Quantity Decrease, Price Decrease
After: The final outcome of the changes on the market will depend on the relative strength of each change and the direction and magnitude of their impact on the market. It is possible that some of the changes may offset each other or have a smaller impact than expected. Therefore, it is important to analyze the changes and their interactions to accurately determine the final outcome on price and quantity.
Gigachad
Uday Tahlan