microeconomics
3. Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected, also indicate whether demand or supply increases or decreases. Then draw the diagram to show the effect on the past and quantity of minivans
A. People decide to have more children.
Answer: It is expected to have more children, and household spending will increase, demand will reduce household wagon. From the supply point of view, due to population increases, station wagon for home consumption will increase, so the producers will increase supply.
Ans in: . If people decide to have more children, they will want larger vehicles for hauling their kids around, so the demand for minivans will increase. Supply will not be affected. The result is a rise in both the price and the quantity sold, as Figure 12 shows. B. A strike by steel workers raises steel prices. Ans: demand is affected, strikes raise steel prices, steel workers ' wages will increase, increased demand for home station wagon. Meanwhile, the domestic steel prices increased input prices rise wagon, supply reduction. Ans in : . If a strike by steelworkers raises steel prices, the cost of producing a minivan rises and the supply of minivans decreases. Demand will not be affected. The result is a rise in the price of minivans and a decline in the quantity sold C. Engineers develop new automated machinery for the production of minivans. Ans: The decision to supply technical factors affected production technologies improve, will increase the supply of domestic wagon.
Ans in: The development of new automated machinery for the production of minivans is an improvement in technology. This reduction in firms ' costs will result in an increase in supply. Demand is not affected. The result is a decline in the price of minivans and an increase in the quantity sold Supply increases, so the price falls and the quantity rises.
D. the price of
A. People decide to have more children.
Answer: It is expected to have more children, and household spending will increase, demand will reduce household wagon. From the supply point of view, due to population increases, station wagon for home consumption will increase, so the producers will increase supply.
Ans in: . If people decide to have more children, they will want larger vehicles for hauling their kids around, so the demand for minivans will increase. Supply will not be affected. The result is a rise in both the price and the quantity sold, as Figure 12 shows. B. A strike by steel workers raises steel prices. Ans: demand is affected, strikes raise steel prices, steel workers ' wages will increase, increased demand for home station wagon. Meanwhile, the domestic steel prices increased input prices rise wagon, supply reduction. Ans in : . If a strike by steelworkers raises steel prices, the cost of producing a minivan rises and the supply of minivans decreases. Demand will not be affected. The result is a rise in the price of minivans and a decline in the quantity sold C. Engineers develop new automated machinery for the production of minivans. Ans: The decision to supply technical factors affected production technologies improve, will increase the supply of domestic wagon.
Ans in: The development of new automated machinery for the production of minivans is an improvement in technology. This reduction in firms ' costs will result in an increase in supply. Demand is not affected. The result is a decline in the price of minivans and an increase in the quantity sold Supply increases, so the price falls and the quantity rises.
D. the price of