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Consider the market for minivans is at equilibrium. Determine, using the supply and demand model, how the following events might affect the equilibrium price and quantity for minivans. Explain why fully. Consider each separately.
a. People decide to have more children.
b. A strike by steelworkers raises steel prices.
c. Engineers develop new automated machinery for the production ofminivans
d. The price of station wagon rises.
e. An economic slowdown in the United States causes household income to decrease.
f. Both event in part a and part c above takes place simultaneously and you don’t have other information.
g. Both event in part a and part c above takes place simultaneously and you have the additional information that the effect of the event described in item c is relatively large while the effect of the event described in part a is small
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