Microeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 4

Consider the market for cars. Which determinant of demand is affected by each of the following events? Choose from: consumer preferences, prices of related goods, incomes, expectations, and the number of buyers.a. Environmentalists launch a successful One Family, One Car campaign.b. A baby boom occurred 16 years ago.c. Layoffs increase as the economy sheds millions of jobs.d. An oil shortage causes the price of gasoline to soar.e. The government offers tax rebates in return for the purchase of commuter rail tickets.f. The government announces a massive plan to bail out the auto industry and subsidize production costs.