Determinants of demand or supply

Assignment: Solve the following problem (Follow APA format)

Consider the market for minivans. For each of the events listed here, identify THE FOLLOWING:

1. Which of the determinants of demand or supply are affected.

2. Also indicate whether demand or supply increases or decreases (for each case).

3. Draw a diagram to show the effect on the price and quantity of minivans for each case

4. Where will the new equilibrium be?

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 vehicle rises.
e. A stock – market crash lowers people’s wealth.

Solution: