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Answer to Question #81922 in Microeconomics for AZIZBEK
Question #81922
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 a diagram to show the effect
on the price and quantity of minivans.
a. People decide to have more children.
b. A strike by steelworkers raises steel prices.
c. Engineers develop new automated machinery for the production of minivans.
d. The price of sports utility vehicles rises.
e. A stock market crash lowers people’s wealth.
which of the determinants of demand or supply are affected. Also indicate whether
demand or supply increases or decreases. Then draw a diagram to show the effect
on the price and quantity of minivans.
a. People decide to have more children.
b. A strike by steelworkers raises steel prices.
c. Engineers develop new automated machinery for the production of minivans.
d. The price of sports utility vehicles rises.
e. A stock market crash lowers people’s wealth.
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A student writes the following: “In the past 15 years, technological advancements have led to an increase in the production of computers. This causes the price of computers to fall. As a result, demand for computers have risen since more people can now afford to buy computers”. Is this analysis true or false? Explain.
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