Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 4

The graph in Figure 3P-4 shows supply and demand in the market for automobiles. For each of the following events, draw the new market outcome, and say whether the equilibrium price and quantity will increase or decrease.
a. Environmentalists launch a successful One Family, One Car campaign.
b. A steel tariff increases the price of steel.
c. A baby boom occurred 16 years ago.
d. An oil shortage causes the price of gasoline to soar.
e. Improvements in robotics increase efficiency and reduce costs.
f. The government offers a tax rebate for the purchase of commuter rail tickets.