Reference no: EM132258314

Draw a market demand and market supply curve for automobiles and label these curves D1 and S1 respectively.

On the same graph, show what would happen if auto workers union required all manufacturers of automobiles to now provide health insurance for all workers and their dependents.(Note: Assume that prior to this change, manufacturers of automobiles do not provide health insurance coverage to 100 percent of their employees and/or their dependents.)

Thinkk about wether this change would affect the demand curve or the supply curve for automobiles, and then considerr in which direction you think the curve should shift. Draw a new curve and use a subscript 2 to identify it as the new demand(D₂) or supply(S₂) whichever is appropriate.

Be sure to label:

• both axes
• the original equilibrium price and quantity before the change
• the new equilibrium price and quantity after the change.